Mortgage applications decreased 2.6% from last week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending July 27, 2018. But notably, the average contract interest rate for 5/1 ARMs increased to its highest level in survey history, increasing from 4.09% last week to 4.17% this week.
On an unadjusted basis, the Mortgage Composite Index decreased 3% from the previous week.
The Refinance Index decreased 2% from the previous week. The unadjusted Purchase Index decreased 3% from last week but is still 1% higher than the same week in 2017, and the seasonally adjusted Purchase Index decreased 3% from one week prior.
The refinance share of mortgage activity increased from last week’s 36.8% to 37.1% of total applications, and the adjustable-rate mortgage share of activity increased to 6.4% of total applications.
The Federal Housing Administration share increased from last week’s 9.9% to 10.4%, and the Veterans Affairs' share of applications increased to 10.5% from 10.2% the prior week.
The Department of Agriculture share of total applications remained unchanged at 0.8% from the week before.
The MBA reported mortgage interest rates for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased from 4.77% last week to 4.84% this week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) increased from 4.72% last week to 4.76% this week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 4.78% from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased from 4.23% to 4.29% this week.