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Mortgage Apps Decline Despite Stable Rates

Applications for mortgage loans declined 0.4 percent during the week according to the latest Weekly Mortgage Applications Survey by MBA. The Market Composite Index remained unchanged on an unadjusted basis from the prior week. The Purchase Index decreased 0.2 percent on an adjusted basis and increased 0.4 percent compared with the previous week on an unadjusted basis. The Purchase Index was 3 percent higher than the same week last year, the survey revealed.

The Refinance Index decreased 1 percent from the week earlier reaching its lowest level since October 2008, the survey indicated. The refinance share of mortgage activity also decreased to 36.3 percent of total applications, reaching its lowest level since 2008. The refinance share was 36.5 percent of total mortgage activity last week.

The share of government loan applications, except for VA loans also decreased during the week. The FHA share of total applications decreased to 10.1 percent from 10.3 percent last week, while the USDA share of loan applications, after remaining unchanged for most of last month, decreased to 0.7 percent from 0.8 percent. The VA share of loan applications increased slightly from 10.2 percent last week to 10.4 percent.

Here's how the average contract interest rate for various loans performed during the week: