Mortgage applications dip as refinance share falls to 10-year low

by Steve Randall12 Apr 2018

There was a decline in mortgage applications last week according to new data from the Mortgage Brokers Association.

Its Market Composite Index was down 1.9% on a seasonally adjusted basis, and down 1% unadjusted, compared to the previous week.

The purchase index was down 2% seasonally adjusted and down 1% unadjusted. The index was 0.5% lower than the same week of 2017.

Refinance mortgage applications fell to a 38.4% share, the lowest since September 2008. The refinance index was down by 2% compared to the previous week.

Just 6.3% of applications were for ARMs.

FHAs took an 11% share of total mortgage applications, up from 10.1% a week earlier; VAs were up to 10.9% from 10.3%; and the share that was for USDAs was unchanged at 0.8%.

Mortgage contract rates mostly lower
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) decreased to 4.66% from 4.69%, with points increasing to 0.46 from 0.43 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) decreased to 4.53% from 4.56%, with points increasing to 0.31 from 0.27 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.66% from 4.74%, with points increasing to 0.76 from 0.54 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.08% from 4.09%, with points increasing to 0.50 from 0.42 (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 since February 2011, 3.93%, from 3.87%, with points increasing to 0.60 from 0.28 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.


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