Lending

Mortgage applications decline 2.3%

Drop in refinancings leads retreat

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Mortgage applications decreased 2.3% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending April 24, 2015.

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.3% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2% compared with the previous week. The Refinance Index decreased 4% from the previous week.

The seasonally adjusted Purchase Index was unchanged from one week earlier. The unadjusted Purchase Index increased 1% compared with the previous week and was 21% higher than the same week one year ago.

The refinance share of mortgage activity decreased to 55% of total applications, its lowest level since September 2014, from 56% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.7% of total applications. The average loan size for purchase applications rose to a survey high of $297,000.

The FHA share of total applications increased to 13.7% from 13.6% the week prior. The VA share of total applications increased to 11.3% from 11.0% the week prior. The USDA share of total applications remained unchanged at 0.8% from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.85% from 3.83%, with points increasing to 0.35 from 0.32 (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 $417,000) decreased to 3.82% from 3.83%, with points increasing to 0.31 from 0.22 (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 3.66% from 3.65%, with points increasing to 0.16 from 0.12 (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 3.14% from 3.11%, with points increasing to 0.31 from 0.24 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.88% from 2.89%, with points decreasing to 0.27 from 0.29 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

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