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Application Volume Decreases Following Strong Week

Mortgage applications decreased slightly from a week earlier, according to this week’s Mortgage Bankers Association (MBA) Applications Survey. The Market Composite Index, a measure of mortgage application volume, showed that applications dropped by 0.1 percent on a seasonally adjusted basis, and rose one percent on an adjusted basis.

This is a substantial difference compared to last week, when applications rose 2.7 percent. Refinances had increased 7 percent that week, as well. But this week, refinances fell 5 percent from the previous week.

The Purchase index increased four percent week-over-week on a seasonally adjusted basis, and on an unadjusted basis, the Purchase Index increased five percent. This is an increase over the previous week’s numbers, which saw a decrease in the Purchase Index of 1 percent.

The refinance share of mortgage activity decreased to 41.6 percent of total applications from 44.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.4 percent of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 4.23 percent from 4.20 percent, with points decreasing to 0.32 from 0.37 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  Last week, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased, from 4.22 percent to 4.20 percent, the lowest rate since November 2016.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances increased to 4.18 percent from 4.15 percent, with points decreasing to 0.23 from 0.27 for 80 percent LTV loans. Last week, the rate for 30-year fixed-rate mortgages with jumbo loan balance did not change, staying at 4.15  percent.

About Author: Seth Welborn

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