MBA: Mortgage applications drop as refi demand reaches record low

Refi share dips to lowest level since June 2009

Mortgage applications continued their recent seesaw as refinance demand dwindled to another record low, according to the latest data from the Mortgage Bankers Association weekly mortgage applications survey for the week ending Feb. 10.

As a whole, mortgage applications fell 3.7%from one week earlier, compared to a 2.3% increase in the previous report.

Both the Refinance Index and Purchase Index decreased from the previous week, falling 3% and 5%, respectively.

The refinance share of mortgage activity once again hit a record low and decreased to 46.9% of total applications, its lowest level since June 2009. This is compared to 47.9% the previous week.

On the other hand, the adjustable-rate mortgage share of activity increased to 7.5% of total applications, its highest level since October 2015.

The Federal Housing Administration share of total applications remained unchanged at 11.9%from the week prior. The Veteran Affairs share of total applications decreased to 11.8% from 12.7% the week prior. The United States Department of Agriculture share of total applications marginally increased to 1% from 0.9% the week prior.

In addition, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to 4.32% from 4.35%.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased to 4.28% from 4.27%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.12% from 4.16%, while the average contract interest rate for 5/1 ARMs decreased to 3.34% from 3.39%.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 3.55%. 

Most Popular Articles

Millennials don’t trust lenders or the housing market – So how do we reach them?

One of the most defining characteristics of the Millennial generation’s experience with the financial and housing ecosystems is that of fear. HousingWire Columnist Kristin Messerli offers a social work-inspired approach to help housing professionals reach younger homebuyers.

Feb 12, 2020 By

Latest Articles

Equifax expects to pay out another $100 million for data breach

The Department of Justice says it knows who hacked Equifax and exposed the sensitive personal information of 148 million consumers, but that doesn’t mean the breach is behind Equifax quite yet.

Feb 14, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please