Mortgage applications plummet 14.9%
The number of mortgage applications filed in the United States plunged 14.9%, according to an industry trade group. The Mortgage Bankers Association said Wednesday that its market composite index – a measure of mortgage application volume – fell 14.9% from the previous week on a seasonally adjusted basis. Meanwhile, the refinance index fell 16.6% from the previous week, and the seasonally adjusted purchase index declined 8.8% from a week earlier. The conventional purchase index fell 11%, while the government purchase index declined 5.9%. On an unadjusted basis, the government purchase index grew 3.3% year-over-year and was the only index to grow over last year. The government share of purchase activity increased in the past three weeks to an index score of 43.5, the highest since April. Home refinancing activity fell this past week with refi applications representing only 77.6% of all mortgage filings, compared to 79.1% a week earlier. The MBA report found purchase applications fell in New England, East Northern Central and the South Pacific regions, while rising 19.6% in the Pacific region. The 30-year, fixed-rate mortgage with conforming loan balances of $417,500 or less increased to 4.33% from 4.25% a week ago, while the 30-year, FRM on jumbo mortgages valued greater than $417,500 increased to 4.64% from 4.59%. In addition, the average contract interest rate for the 30-year, FRM backed by the FHA increased to 4.12% from 4.06%, while the 15-year, FRM increased to 3.61% from 3.53%. Write to Kerri Panchuk.