Mortgage Apps Stumble; Loan Amounts Hit New High

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey, mortgage applications declined in the last week, though loan sizes are seeing record highs.

The Market Composite Index, a measure of mortgage loan application volume, decreased 3.3 percent for the week ending April 18 on a seasonally adjusted basis from one week earlier, the group reported.

On an unadjusted basis, the Index decreased 3 percent.

Refinances declined 4 percent from the previous week, while the refinance share of mortgage activity decreased to 51 percent of total applications from 52 percent the previous week.

The average loan size for purchase applications has reached its highest level in the history of the survey at $280,500, coinciding with the trend in rising purchase activity for larger loan amounts.

The average contract interest rate for 30-year fixed-rate mortgages increased to 4.49 percent from 4.47 percent, with points increasing to 0.50 from 0.32 for 80 percent loan-to-value loans.