Mortgage applications decreased 2.6% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 18.
The market composite index, a measure of mortgage loan application volume, decreased 2.6% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index decreased 3% compared with the previous week. The refinance index decreased 4% from the previous week to its lowest level since December 2000. The seasonally adjusted purchase index decreased 2% from one week earlier. The unadjusted purchase index decreased 3% compared with the previous week and was 3% higher than the same week one year ago, according to the MBA.
The refinance share of mortgage activity decreased to 35.7% of total applications from 35.9% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.8% of total applications.
The FHA share of total applications remained unchanged at 10.3% from the week prior; the VA share of total applications decreased to 9.8% from 10.3% the week prior, and the USDA share of total applications remained unchanged at 0.8% from the week prior.
The MBA notes that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to its highest level since April 2011, 4.86%, from 4.77%, with points increasing to 0.52 from 0.50 (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 $453,100) increased to its highest level since September 2013, 4.81% from 4.73%, with points increasing to 0.42 from 0.35 (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 its highest level since May 2011, 4.90 percent from 4.78 percent, with points increasing to 0.85 from 0.76 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since February 2011, 4.31% from 4.20%, with points increasing to 0.56 from 0.53 (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 its highest level in the history of the survey, 4.12% from 4.09%, with points decreasing to 0.46 from 0.56 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week.