Mortgage 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.