Mortgage applications fell again this week, down 6.0% from last week’s 1.3% drop the week earlier, according to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association’s (MBA) released Wednesday.
This week’s numbers:
- The Market Composite Index, a measure of mortgage loan application volume, decreased 6.0% on a seasonally adjusted basis from one week earlier.
- On an unadjusted basis, the Index decreased 6% compared with the previous week.
- The Refinance Index decreased 7% from the previous week and was 11% lower than the same week one year ago.
- The seasonally adjusted Purchase Index decreased 6% from one week earlier.
- The unadjusted Purchase Index decreased 6% compared with the previous week and was 22% lower than the same week one year ago.
- The refinance share of mortgage activity decreased to 31.7% of total applications from 31.9% the previous week.
- The adjustable-rate mortgage (ARM) share of activity increased to 8.0% of total applications.
- The FHA share of total applications increased to 14.5% from 14.1% the week prior.
- The VA share of total applications decreased to 10.1% from 10.9% the week prior.
- The USDA share of total applications remained unchanged at 0.5% from the week prior.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 7.53% from 7.41%, with points increasing to 0.80 from 0.71 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
- The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $726,200) increased to 7.51% from 7.34%, with points decreasing to 0.74 from 0.78 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
- The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 7.29% from 7.16%, with points increasing to 1.01 from 0.96 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
- The average contract interest rate for 15-year fixed-rate mortgages increased to 6.86% from 6.73%, with points decreasing to 1.14 from 1.17 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
- The average contract interest rate for 5/1 ARMs increased to 6.49% from 6.47%, with points decreasing to 1.21 from 1.58 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
MBA’s take:
“Mortgage rates continued to move higher last week as markets digested the recent upswing in Treasury yields. Rates for all mortgage products increased, with the 30-year fixed mortgage rate increasing for the fourth consecutive week to 7.53%—the highest rate since 2000,” said Joel Kan, MBA’s vice president and deputy chief economist. “As a result, mortgage applications ground to a halt, dropping to the lowest level since 1996. The purchase market slowed to the lowest level of activity since 1995, as the rapid rise in rates pushed an increasing number of potential homebuyers out of the market. ARM loan applications picked up over the week and the ARM share increased to 8%, as some borrowers searched for ways to lower their payments.”
