Mortgage loan applications declined for the second consecutive week decreasing 2.5 percent from last week according to the Weekly Mortgage Applications Survey by the MBA. The Market Composition Index, a measure of mortgage loan application volume, decreased 2.5 percent on a seasonally adjusted basis from the prior week, data indicated.
While the Purchase Index decreased 2 percent from the earlier week, the Refinance Index fell 4 percent during the same period. The survey indicated that the refinance share of mortgage activity decreased to 36.5 percent of total applications, from 37.2 percent last week, its lowest level since September 2008.
The FHA and VA share of total applications increased slightly to 10.3 percent and 10.2 percent respectively, even as the USDA share of total applications remained unchanged at 0.8 percent during the week.
Here’s how the average contract interest rate on various loans performed during the week:
- For 30-year fixed-rate mortgages with conforming loan balances, the rate increased to 4.8 percent from 4.73 percent last week, touching its highest level since September 2013. The effective rate increased from last week.
- The rate for 30-year fixed-rate mortgages with jumbo loan balances increased to 4.69 percent, its highest level since September 2013, from 4.64 percent. The effective rate increased from last week.
- For FHA backed 30-year fixed-rate mortgages the rates increased to their highest level since July 2011 to 4.81 percent from 4.71 percent; the effective rate increased from last week.
- Rates for 15-year fixed-rate mortgages increased to their highest level since February 2011 to 4.21 percent, from 4.13 percent. The effective rate also saw an increase.
- Rates for 5/1 ARMs also increased to a survey high of 4.03 percent, from 3.98 percent. The effective rate increased from last week.