MBA: Mortgage applications continue to plummet

Interest rates suddenly drop

Mortgage applications continued last week’s decreasing trend, falling 2.9% from last week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending May 18, 2018.

On an unadjusted basis, the index decreased 4% from last week.

The Refinance Index dropped 5% from the previous week, the lowest since December 2000. The unadjusted Purchase Index also decreased, falling 3% from last week, but the seasonally adjusted Purchase Index, which dropped 2% from last week is still 2% higher from this time last year.

The refinance share of mortgage activity decreased from last week’s 35.7% to 35.3% of total applications, its lowest level since August 2008.

The adjustable-rate mortgage share of activity decreased to 6.7% of total applications.

The Federal Housing Administration decreased from the 10.3% the prior week to 9.9%, but the Veterans Affairs' share of applications increased from 9.8% last week to 9.9%.

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) decreased from last week’s 4.86% to 4.84%. 

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) decreased from 4.81% last week to 4.73%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased from last week’s 4.9% to 4.85% this week.

The average contract interest rate for 15-year fixed-rate mortgages decreased from last week’s 4.31% to 4.24% this week.

Lastly, the average contract interest rate for 5/1 ARMs decreased to 4.11%, down from 4.12% last week.

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