Despite another quiet week for mortgage applications overall, average purchase application loan size managed to post a new high, continuing recent trends.
As a whole, mortgage applications increased 1.5% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending April 7.
Looking at only the refinance market, the refinance share of mortgage activity decreased to 41.6% of total applications, the lowest level since September 2008, from 42.6% the previous week. This downward trend has carried on for some time now, with even last week posting the lowest level in eight years.
The adjustable-rate mortgage share of activity, however, remained unchanged at 8.5% of total applications.
On the other side, the purchase market is on the rise, offsetting some of the drop in refinance volume. Once again, the average loan size for purchase applications reached a survey high, coming in at $318,700.
In addition, the Refinance Index remained unchanged from the previous week. The seasonally adjusted Purchase Index increased 3% from one week earlier.
The Federal Housing Administration’s share of total applications decreased to 10.7% from 11.1% the week prior. The Veterans Affairs’ share of total applications increased to 11.3% from 11.1% the week prior, as the United States Department of Agriculture’s share of total applications remained unchanged at 1% from the week prior.
Mortgage rates remained relatively still, with the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreasing to 4.28% from 4.34%.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) remained unchanged at 4.24%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.14% from 4.15%, while the average contract interest rate for 15-year fixed-rate mortgages decreased to 3.51% from 3.57%.
Lastly, the average contract interest rate for 5/1 ARMs remained unchanged at 3.33%.