Mortgage applications dropped 2.8% from two weeks ago, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending December 29, 2017.
This decrease includes an adjustment to account for the Christmas holiday. On an unadjusted basis, the index decreased a full 42% from two weeks ago.
The Refinance Index decreased 7% from two weeks ago, continuing the previous 3% drop. However, the Purchase Index increased, rising 1% from two weeks ago.
While the index changes were calculated relative to two weeks prior, the following compositional and rate measures are presented relative to the previous week only.
The refinance share of mortgage activity increased to 52% of total applications, up from 51.8% the week before.
The adjustable-rate mortgage share of activity decreased to 5.3% of total applications, down from 5.6% last week.
The Federal Housing Administration’s share of applications increased from 10.3% last week to 10.4% this week, and the Veterans Affairs' share of applications increased to 11.2%, up from 10.6% last week.
The Department of Agriculture’s share of total applications increased from last week’s 0.7% to 0.8%.
The MBA reported mortgage interest rates for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged from last week’s 4.25%.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) decreased to 4.13% from 4.21% last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.17%, up from last week’s 4.15%.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.65% from 3.66%.
Lastly, the average contract interest rate for 5/1 ARMs decreased to 3.4% from 3.56%.