Home >> Daily Dose >> Mortgage Loan Applications Lose Momentum
Print This Post Print This Post

Mortgage Loan Applications Lose Momentum

Loan ApplicationsMortgage loan applications declined for the sixth consecutive week, decreasing 2.9 percent from the week earlier according to the latest data from the Weekly Mortgage Applications Survey by the MBA.

On an unadjusted basis, mortgage loan applications volume decreased 4 percent compared with the previous week. The data indicated that purchase loan applications volume decreased 2 percent from a week earlier on a seasonally adjusted basis. On an unadjusted basis, it declined 3 percent compared to the previous week. However, purchase loan applications were 2 percent higher compared to the same period last year.

The volume of refinance loan applications hit their lowest level since 2000, decreasing 5 percent from the prior week, according to the data. The refinance share of total mortgage activity also declined to its lowest level since August 2008 to 35.3 percent of total applications from 35.7 percent in the previous week. The adjustable-rate mortgage (ARM) share of activity also decreased to 6.7 percent of total applications, the data indicated.

For government loan applications, while the FHA share of total applications decreased to 9.9 percent from 10.3 percent last week, the VA share of total applications increased slightly to 9.9 percent from 9.8 percent in the previous week. The USDA share of loans remained unchanged at 0.8 percent.

Here’s how the average contract interest rates performed for various loans:

  • For 30-year fixed-rate mortgages with conforming loan balances rates decreased to 4.84 percent from 4.86 percent.
  • The rate for 30-year fixed-rate mortgages with jumbo loan balances also decreased to 4.73 percent from 4.81 percent.
  • For FHA-backed 30-year fixed-rate mortgages, the rates decreased to 4.85 percent from 4.90 percent.
  • The 15-year fixed-rate mortgages rate decreased to 4.24 percent from 4.31 percent.
  • The rate for 5/1 ARMs decreased to 4.11 percent from 4.12 percent. However, their effective rate increased from last week.

About Author: Radhika Ojha

Radhika Ojha is an independent writer and editor. A former Online Editor and currently a reporter for MReport, she is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her master’s degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas.
x

Check Also

Home Sales Saw Largest Monthly Decline Since Pandemic Onset

Housing supply fell to a new low in December 2021, fueling a 3.6% month-over-month drop in home sales, severely affecting housing demands.

Subscribe to MDaily

MReport is here for you to stay on top of important developments in the mortgage marketplace. To begin receiving each day’s top news, market information, and breaking news updates, absolutely free of cost, simply enter your email address below.