Mortgage applications fell by 3.7% over the week ending February 8th, 2019, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, fell by 4% from the previous week. The Refinance Index fell 0.1% over the same period. Both the seasonally-adjusted and the unadjusted Purchase Index fell by 6%.
“Application activity fell last week – even with rates decreasing – as renewed uncertainty about the domestic and global economy likely held potential homebuyers off the market,” says Joel Kan, MBA’s associate vice president of industry surveys and forecasts. “Despite the recent decline in applications, we still expect that the continued strength of the job market and lower rates will support more purchase activity in the coming months.”
The refinance share of mortgage activity rose to 43.2% of total applications, up from 41.6% the previous week. The adjustable-rate mortgage (ARM) share fell to 7.5%. The FHA share rose to 11.0% from 10.5%, the VA share rose to 11.0% from 10.0%, and the USDA share rose to 0.6% from 0.5%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) fell to 4.65% from 4.69%. Points for 80% loan-to-value ratio (LTV) loans fell to 0.43 from 0.45. (All 80% LTV loan reports include the origination fee.) The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) fell to 4.48% from 4.50% the previous week. Points for 80% LTV loans fell to 0.27 from 0.28, and the effective rate decreased from last week.
“The 30-year fixed-rate mortgage dropped to its lowest level since last March, and was 52 basis points lower than its recent high last November,” Kan adds. “Government refinances provided a bright spark, picking up over 10 percent, as both FHA and VA refinancing activity saw increases over the week.”
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell to 4.61% from 4.70%. Points for 80% LTV loans fell to 0.53 from 0.57, and the effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages fell to 4.04% from 4.11%. Points for 80% LTV loans rose to 0.48 from 0.47, and the effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs fell to 3.97% from 4.04%. Points for 80% LTV loans rose to 0.42 from 0.37, and the effective rate decreased from last week.
