On a seasonally adjusted basis, the Market Composite Index, which is a measure of loan application volume, decreased by 0.1 percent and decreased 2 percent compared with the previous week on an unadjusted basis. Additionally, the Refinance Index decreased 1 percent week over week while the seasonally adjusted Purchase Index increased 1 percent from one week earlier. On an unadjusted basis, it declined 2 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 went up by 2 percent week over week, from 38.9 percent of total applications from 38.7 percent. Meanwhile, The adjustable-rate mortgage (ARM) share of activity also decreased to 6.1 percent of total applications, the data indicated.
For government loan applications, while the FHA share of total applications stayed unchanged, remaining steady at 10.2 percent, the VA share of total applications decreased slightly to 10 percent from 10.5 percent the week prior. The USDA share of loans increased to 0.8 percent from 0.7 percent the week prior.
Here’s how the average contract interest rates performed for various loans:
- For 30-year fixed-rate mortgages with conforming loan balances rates increased to 4.80 percent from 4.78 percent. The effective rate decreased from last week.
- The rate for 30-year fixed-rate mortgages with jumbo loan balances decreased to 4.67 percent from 4.68 percent as did its effective rate.
- For FHA-backed 30-year fixed-rate mortgages, the rates increased to 4.79 percent from 4.77 percent. The effective rate for these loans remained unchanged.
- The 15-year fixed-rate mortgages rate decreased to 4.24 percent from 4.31 percent. The effective rate for these loans also saw a dip during the week.
- The rate for 5/1 ARMs increased to 4.09 percent from 3.95 percent. The effective rate for 5/1 ARMs increased.