Mortgage applications plummet 11.7%
Mortgage applications fell 11.7% this past week as demand for refinanced loans cooled across the country, an industry trade group said. The Mortgage Bankers Association noted that its market composite index – a measure of loan application volume – dropped 11.7%. The steep drop is tied to a 15.3% decline in the refinancing index. Meanwhile, the seasonally adjusted purchase index fell a slight 0.8% from the previous week. Refinancing activity stalled over the course of the past week, with it now making up 73.9% of all loan applications, down from 75.9% a week earlier. The average rate for a 30-year, fixed rate mortgage valued at $417,500 or less fell to 4.21% from 4.23%. In addition, the average contract interest rate for a 30-year, FRM jumbo declined to 4.55% from 4.59%. The 30-year, FRM backed by the FHA also declined to 4%, and the average 15-year, FRM remained unchanged at 3.58%. In addition, the average contract interest rate for 5/1 ARMs fell to 2.98% from 3%. Write to Kerri Panchuk.