MBA: Mortgage apps continue downward spiral

Interest rates continue to hit new multi-year highs

Mortgage applications continued last week’s decreasing trend, falling 2.5% from last week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending April 27, 2018.

On an unadjusted basis, the index increased 2% from last week.

The Refinance Index dropped 4% from the previous week. The Purchase Index also decreased, falling 2% from last week.

The refinance share of mortgage activity decreased from last week’s 37.2% to 36.5% of total applications, still its lowest level since September 2008.

The adjustable-rate mortgage share of activity increased from 6.5% last week to 6.7% of total applications.

The Federal Housing Administration share of applications increased from 10.2% last week to 10.3% this week, and the Veterans Affairs' share of applications increased from 10.1% last week to 10.2%.

The Department of Agriculture share of total applications remained unchanged from last week at 0.8% this week.

The MBA reported mortgage interest rates for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased from last week’s 4.73% to 4.8%, the highest share since September 2013.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) increased from 4.64% last week to 4.69%, also its highest point since September 2013.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased from last week’s 4.71% to 4.81% this week, the highest level since February 2011.

The average contract interest rate for 15-year fixed-rate mortgages increased from last week’s 4.13% to 4.21% this week, the highest share since February 2011.

Lastly, the average contract interest rate for 5/1 ARMs increased to 4.03%, up from 3.98% last week,  hitting an all-new survey high.

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