Mortgage applications dropped 2.3% from last week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending December 8, 2017.
The Refinance Index decreased 3% from last week, continuing last week’s 8% drop. The Purchase Index reversed course and decreased 1% from last week.
The refinance share of mortgage activity increased to 52.4% of total applications, up from 51.6% the week before and its highest level since January 2017.
The adjustable-rate mortgage share of activity, however, decreased to 5.6% of total applications.
The Federal Housing Administration’s share of applications increased from 11.1% last week to 11.8% this week, but the Veterans Affair’s share of applications decreased to 10.3%, down from 10.7% last week.
The Department of Agriculture’s share of total applications decreased from 0.8% last week to 0.7%.
The MBA reported mortgage interest rates for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased from last week’s 4.19% to 4.2%.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) decreased to 4.11% from 4.16% last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.13%, up from last week’s 4.11% to its highest level since April 2017.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.61% from 3.61%, the highest level since March.
Lastly, the average contract interest rate for 5/1 ARMs decreased to 3.42% from 3.48%.