Applications for mortgages fell slightly to 3.3 percent from a week ago according to data from the Weekly Mortgage Applications Survey by MBA. On an unadjusted basis, applications declined by 3 percent.
The Purchase Index decreased 2 percent from the week earlier. Compared to the same week last year, however, the purchase index was 5 percent higher on an unadjusted basis, the data indicated.
Refinance mortgages continued to decline during the week with the Refinance Index decreasing 5 percent over the previous week. The refinance share of mortgage activity decreased to its lowest level since September 2008 to 38.5 percent of total applications, from 39.4 percent last week, while the adjustable-rate mortgage (ARM) share of activity decreased to 6.5 percent of total applications.
According to data from the survey, FHA share of total applications increased to 10.1 percent from 9.9 percent in the prior week, while VA and USDA share of total applications remained unchanged at 10.3 percent and 0.8 percent respectively.
Here’s how the average contract interest rates on various loans performed during the week:
- On 30-year-fixed-rate mortgages with conforming loan balances, the rates and points remained unchanged at 4.69 percent and 0.43 points respectively. The effective rate remained unchanged from the last week too.
- Rates for the 30-year-fixed-rate mortgages with jumbo balances decreased to 4.56 from 4.60 in the previous week. Points also decreased from 0.36 to 0.27 for 80 percent LTV loans along with the effective rate which also saw a decline from last week.
- The rate for 30-year-fixed-rate mortgages backed by FHA decreased to 4.74 percent from 4.75 percent with points decreasing to 0.54 from 0.56 for 80 percent LTV loans. The effective rate also decreased from last week.
- The 15-year fixed-rate mortgages remained unchanged at 4.09 percent with points decreasing to 0.42 from 0.46 for 80 percent LTV loans. The effective rate decreased from last week.
- The rate for 5/1 ARMs decreased to 3.87 percent from 3.92 percent, with points decreasing to 0.28 from 0.46 for 80 percent LTV loans. The effective rate also decreased from last week.