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MBA: Quiet week for mortgage applications as volume drops

Share of refinance volume slightly increases

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After refinance applications dropped to record lows for several weeks, mortgage applications posted a quiet week on both the refinance and purchase side.

Mortgage applications decreased 1.8% from the previous week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending April 14.

This week’s results do not include an adjustment for the Good Friday holiday.

Broken up, the Refinance Index increased 0.2% from the previous week, while the seasonally adjusted Purchase Index decreased 3% from one week earlier.

Rising from the lowest level since September 2008 in the previous report, the refinance share of mortgage activity increased to 42.4% of total applications. The adjustable-rate mortgage share of activity decreased to 8.4% of total applications.

The Federal Housing Administration’s share of total applications increased to 11.0% from 10.7% the week prior. The Veterans Affairs’ share of total applications decreased to 11.1% from 11.3% the week prior.

Meanwhile, the United States Department of Agriculture’s share of total applications remained unchanged 1.0% from the week prior.

As far as mortgage products, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to its lowest level since November 2016, 4.22%, from 4.28%.

Similarly, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) decreased to its lowest level since November 2016, 4.15%, from 4.24%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.09% from 4.14%.

The average contract interest rate for 15-year fixed-rate mortgages decreased to its lowest level since November 2016, 3.50%, from 3.51%, while the average contract interest rate for 5/1 ARMs decreased to its lowest level since November 2016, 3.27%, from 3.33%.

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