Mortgage applications erased the previous week’s gains and declined 3.2% from one week earlier, according the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Jan. 27, 2017.
It’s important to note that the previous week’s results included an adjustment for the MLK Day holiday.
For comparison, with the holiday in the previous report, applications increased 4%.
Broken up, the Refinance Index decreased 1% from the previous week, while the seasonally adjusted Purchase Index decreased 6% from one week earlier.
The refinance share of mortgage activity dipped below 50%, falling to 49.4% of total applications from 50.0% the previous week. The adjustable-rate mortgage share of activity increased to 6.4% of total applications.
The Federal Housing Administration’s share of total applications decreased to 12.1% from 13.6% the week prior, as the Veteran Affairs’ share of total applications increased to 12.4% from 12.2% the week prior.
Once again, the United States Department of Agriculture’s share of total applications remained unchanged at 0.9% from the week prior.
Interest rates for all mortgage products increased, excluding the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,000 or less) increased to its highest level since December 2016, 4.39%, from 4.35%.
Similarly, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,000) increased to 4.32% from 4.28%.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.61% from 3.57%, while the average contract interest rate for 5/1 ARMs decreased to 3.33% from 3.41%,
And as the only one to decline, the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.17% from 4.19%.