This means on an unadjusted basis, the index slid 1% from the previous week.
MBA Vice President of Economic and Industry Forecasting Joel Kan said mortgage applications were lower last week, driven by a 3% decrease in purchase applications.
“While purchase activity was still up 6% from a year ago, the index has now decreased for three straight weeks and reached its lowest point since March. Despite healthy demand, inadequate supply levels continue to hold back some would-be buyers,” Kan said. “Rate movements were mixed, with the 30-year fixed rate remaining
unchanged (at 4.08%) but the FHA rate decreasing to its lowest level since 2017 to 3.94%.”
The Refinance Index rose 0.1% from the previous week and was a striking 84% higher than the same time period in 2018. The unadjusted Purchase Index fell 3% from a week ago but remained 6% higher than the same week a year ago. The seasonally adjusted Purchase Index slid 3% from the week before.
“Refinance applications were essentially flat, but the components told different stories,” Kan said. “Conventional refinances were up 1.1%, but government refinances were down almost 3% –led by a drop in VA applications.”
Here’s a more detailed breakdown of this week’s mortgage application data:
- The refinance share of mortgage activity increased to 50.5% from last week’s 49.8%.
- The adjustable-rate mortgage share of activity remained unchanged from 4.7% of total applications.
- The Federal Housing Administration‘s share of mortgage apps stayed at last week’s 11.3%.
- The Department of Veterans Affairs‘ share of applications moved backward to 12.6% from last week’s 13.1%.
- The Department of Agriculture‘s share of total applications held steady from last week’s 0.6%.
- Mortgage interest rates for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) did not budge from last week’s rate of 4.08%.
- The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) held its ground from last week’s 4.04%.
- The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA declined to its lowest level since September 201, falling from last week’s 3.98% to 3.94%.
- The average contract interest rate for 15-year fixed-rate mortgages rose from last week’s 3.45 to 3.48%.
- The average contract interest rate for 5/1 ARMs slightly decreased to 3.52% from last week’s 3.56%.