Mortgage applications fell 12 percent over the most recent two-week period, according to data gathered in the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. The MBA’s Refinance Index declined 22 percent, as well, while the Purchase Index declined 41 percent.
The refinance share of mortgage activity, however, increased to 52.2 percent of total applications from 51.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.4 percent of total applications.
The FHA share of total applications also increased to 11.6 percent from 10.7 percent the previous week, while VA share of total applications decreased to 12.3 percent from 12.4 percent the previous week. The USDA share of total applications increased to 1.1 percent from 1.0 percent the previous week.
According to data from the survey, average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.39 percent from 4.45 percent, with points increasing to 0.43 from 0.39 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.37 percent from 4.41 percent, with points increasing to 0.44 from 0.21 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 4.22 percent, with points decreasing to 0.34 from 0.44 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages, in addition, decreased to 3.64 percent from 3.70 percent, with points increasing to 0.38 from 0.34 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for 5/1 ARMs decreased to 3.28 percent from 3.41 percent, with points increasing to 0.42 from 0.29 (including the origination fee) for 80 percent LTV loans.
