After a week of positive numbers, mortgage applications returned to their decreasing trend, falling 1.7% from the previous week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending August 24, 2018.
On an unadjusted basis, the Market Composite Index, a measure of loan application volume, decreased 3% from the previous week. The Refinance Index decreased 3% from last week, and the unadjusted Purchase Index also fell 3% from last week but is still 3% higher than the same week in 2017. The seasonally adjusted Purchase Index slid down 1% from one week prior.
The refinance share of mortgage activity remained unchanged from last week’s 38.7% of applications, and the adjustable-rate mortgage share of activity dropped to 6.3%, down from 6.5% last week.
The Federal Housing Administration share of mortgage apps held its ground from the prior week, coming in once again at 10.2% and the Veterans Affairs’ share of applications also remained steady at 10.5% from the previous week.
The Department of Agriculture share of apps didn’t budge, remaining at 0.7% like the week before.
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 4.81% to 4.78 this week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) remained at 4.68% like the week before.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased from 4.82% last week to 4.77% this week.
The average contract interest rate for 15-year fixed-rate mortgages slid from 4.25% last week to 4.24% this week.
The average contract interest rate for 5/1 ARMs decreased to 3.95% this week, falling from 4% last week.