After increasing dramatically during the previous three weeks, mortgage application volume decreased 2.6% for the week ended Jan. 29, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
The previous week, the MBA adjusted its index to account for the Martin Luther King holiday.
During the week ended Jan. 29, applications for refinances increased 0.3%, while applications for purchases decreased 7%.
On an unadjusted basis, total volume decreased 11% compared with the previous week.
Applications for purchases increased 11% on an unadjusted basis compared with the previous week and increased 17% compared with the same week one year ago.
The refinance share of mortgage activity increased to 59.2% of total applications – up from 59.0% the previous week.
Fixed mortgage rates continue to hover at around 4.0%. The average rate for a 30-year, fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 3.97%, down from 4.02% the previous week.
The average rate for 30-year FRM with jumbo loan balance (greater than $417,000) was 3.84%, down from 3.89%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.80%, down from 3.83%.
The average rate for a 15-year FRM was 3.22%, down from 3.28%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.00%, down from 3.09%.
The ARM share of activity decreased to 5.9% of total applications.
Looking at application volume by loan type, applications for loans backed by the FHA were 12.9%, up from 12.7% the week prior. The Veterans Affairs share of total applications remained unchanged at 11.1%. The U.S. Department of Agriculture share of applications also remained unchanged at 0.7%.