Mortgage applications dropped 4.1% from one week earlier, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending May 12, 2017.
The drop follows a recent seesaw in mortgage applications, as refinance volume falls to record lows.
Hitting new low, the refinance share of mortgage activity decreased to 41.1% of total applications, which is the lowest level since September 2008. This is also down from 41.9% the previous week. The adjustable-rate mortgage share of activity decreased to 8.1% of total applications.
Furthermore, the average loan size for purchase applications jumped to a survey high of $322,300.
The Refinance Index decreased 6% from the previous week, while the seasonally adjusted Purchase Index decreased 3% from one week earlier.
As for different loans products, the Federal Housing Administration’s share of total applications increased to 10.6% from 10.5% the week prior. The Veterans Affairs’ share of total applications decreased to 10.7% from 10.8% the week prior. The U. S. Department of Agriculture’s share of total applications remained unchanged at 0.8% from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained frozen at 4.23%.
Additionally, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased to 4.23% from 4.22%, while the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.11% from 4.09%.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.51% from 3.5%.