This week’s mortgage application data looked similar to the previous week’s report as applications fell once again due to a drop in refinance demand.
According to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Feb. 17, mortgage applications dropped 2% from one week earlier.
Broken up, the Refinance Index decreased 1% from the previous week to the lowest level since January 2017, while the seasonally adjusted Purchase Index decreased 3% from one week earlier to the lowest level since November 2016.
The refinance share of mortgage activity decreased to 46.2% of total applications, which is the lowest level since November 2008. This is compared to 46.9% of total applications in the previous report, which was the lowest level since June 2009.
The adjustable-rate mortgage share of activity decreased to 7.3% of total applications.
The Federal Housing Administration share of total applications slightly dropped to 11.6% from 11.9% the week prior, as the United States Department of Agriculture’s share of total applications decreased to 0.9% from 1.0% the week prior. The Veteran Affairs share of total applications increased to 12.1% from 11.8% the week prior.
As for mortgage products, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.36% from 4.32%.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased to 4.29% from 4.28%.
Similarly, the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.14% from 4.12%.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.56% from 3.55%.
And posting the only decline, the average contract interest rate for 5/1 ARMs decreased to 3.31% from 3.34%.