Refinances led the decline
There was another decline in mortgage applications in the week ending April 27, 2018 as rates continued higher.
The Mortgage Bankers Association’s weekly survey shows a 2.5% decrease in the Market Composite Index (seasonally adjusted.) It was down 2% unadjusted.
The refinance index was down 4% from the previous week. The purchase index was down 2% seasonally-adjusted and 1% unadjusted, but was 5% higher than a year earlier.
The refinance share of mortgage activity decreased to 36.5 percent of total applications, its lowest level since September 2008, from 37.2 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 6.7% of total applications.
FHA share of total applications increased to 10.3% from 10.2% a week earlier. The VA share of total applications increased to 10.2% from 10.1% and the USDA share of total applications remained unchanged at 0.8%.
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, 4.69% from 4.64%, with points increasing to 0.42 from 0.39 (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 July 2011, 4.81% from 4.71%, with points decreasing to 0.78 from 0.79 (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 its highest level since February 2011, 4.21% from 4.13%, with points decreasing to 0.49 from 0.52 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
