MBA: Mortgage Application Volume Fell 9%

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Mortgage application volume fell 9.0% on an adjusted basis during the week ended Feb. 6, compared to the previous week, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

On an unadjusted basis, volume fell 7% compared with the previous week.

Applications for refinances were down 10% while applications for purchases were down 7%.

On an unadjusted basis, purchase volume decreased 1% compared with the previous week but was 1% higher compared to the same week one year ago.

The refinance share of mortgage activity was 69% of total applications, down from 71% the previous week.

Not helping things was the fact that mortgage rates appear to be on the rise again. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 3.84%, up from 3.79% the previous week.

The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 3.90%, up from 3.82%.

The average rate for a 30-year FRM backed by the Federal Housing Administration was 3.72%, up from 3.69%.

The average rate for a 15-year FRM was 3.15%, up from 3.14%.

The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.07%, up from 3.03%.

The ARM share of activity increased to 5.7% of total applications.

Looking at application volume by loan type, applications for mortgages backed by the FHA represented 14.1% of all applications, up from 13.1% the previous week. Applications for Veterans Affairs mortgages represented 8.3% of all loans, down from 8.5% the previous week. Applications for mortgages through the U.S. Department of Agriculture were 0.7% of all applications, up from 0.6% the previous week.

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