Falling in line with the rest of this spring home-buying season, mortgage applications dropped 4.1%, according to the latest data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending May 27.
The Refinance Index decreased 4% from the previous week, while the seasonally adjusted Purchase Index dipped 5% from one week earlier.
Meanwhile, the government purchase index decreased 6% from one week earlier to the lowest level since November 2015.
Broken up, the refinance share of mortgage activity barely increased to 54.3% of total applications from 53.7% the previous week, as the adjustable-rate mortgage share of activity decreased to 5% of total applications.
The Federal Housing Administration’s share of total applications fell to 12.5% from 12.7% the week prior. The Veteran Affairs’ share of total applications increased to 12% from 11.5% the week prior, and the United States Department of Agriculture’s share of total applications stayed frozen at 0.7%.
In addition, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) stayed the same at 3.85%
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) slightly decreased to 3.81% from 3.82%
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.65% from 3.70%,
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.12% from 3.06%, while the average contract interest rate for 5/1 ARMs decreased to 3% from 3.09%.