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MBA: Mortgage applications continue downward trend

Interest rates move even higher

At this point, it seems like mortgage interest rates are reaching new record highs each week as applications keep disappearing as a result.

Mortgage applications decreased 4% from one week earlier, according to the latest Mortgage Bankers Association Weekly Mortgage Applications Survey for the week ending Dec. 9.

This follows a.7% decline in applications last week and a 9.4% decline the week before that.

Broken up, the Refinance Index fell 4% from the previous week, as the seasonally adjusted Purchase Index decreased 3% from one week earlier.

The refinance share of mortgage activity increased to 57.2% of total applications, slightly up from 56.2% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.2% of total applications.

The FHA share of total applications increased to 11.6% from 11.3% the week prior.

However, the VA share of total applications decreased to 11.9% from 12.6% the week prior. The USDA share of total applications remained frozen at 0.9% from the week prior.

Moving on to interest rates, both the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances and with jumbo loan balances reached new highs.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since October 2014, 4.28%, from 4.27%.

In addition, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to its highest level since September 2014, 4.29%, from 4.22%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.02% from 4%.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.52 percent from 3.53%, while the average contract interest rate for 5/1 ARMs decreased to 3.28% from 3.39%.

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