Mortgage

MBA: Mortgage applications continue to decline

Refinance demand drops to another record low

This week’s mortgage application data looked similar to the previous week’s report as applications fell once again due to a drop in refinance demand.        

According to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Feb. 17, mortgage applications dropped 2% from one week earlier.

Broken up, the Refinance Index decreased 1% from the previous week to the lowest level since January 2017, while the seasonally adjusted Purchase Index decreased 3% from one week earlier to the lowest level since November 2016.

The refinance share of mortgage activity decreased to 46.2% of total applications, which is the lowest level since November 2008. This is compared to 46.9% of total applications in the previous report, which was the lowest level since June 2009.

The adjustable-rate mortgage share of activity decreased to 7.3% of total applications.

The Federal Housing Administration share of total applications slightly dropped to 11.6% from 11.9% the week prior, as the United States Department of Agriculture’s share of total applications decreased to 0.9% from 1.0% the week prior. The Veteran Affairs share of total applications increased to 12.1% from 11.8% the week prior.

As for mortgage products, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.36% from 4.32%.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased to 4.29% from 4.28%.

Similarly, the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.14% from 4.12%.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.56% from 3.55%.

And posting the only decline, the average contract interest rate for 5/1 ARMs decreased to 3.31% from 3.34%.

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