Mortgage applications have fallen 2.9% on a seasonally-adjusted basis from one week earlier for the week ending May 25, 2018, according to 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% over the previous week. The Refinance Index decreased by 5% from the previous week, down to its lowest level since December 2000. The seasonally-adjusted Purchase Index fell 2%, and the unadjusted Purchase Index fell 3%.
The refinance share of mortgage activity fell to its lowest level since August 2008 at 35.3% of total applications, down from 35.7%. The adjustable-rate mortgage (ARM) share fell to 6.7% of total applications. The FHA share fell to 9.9% from 10.3%, the VA share rose to 9.9% from 9.8%, and the USDA share remained unchanged at 0.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) fell to 4.84% from 4.86%. Points for 80% loan-to-value ratio (LTV) loans fell to 0.47 from 0.52. (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 $453,100) fell to 4.73% from 4.81%. Points for 80% LTV loans fell to 0.36 from 0.42, and the effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell to 4.85% from 4.90%. Points for 80% LTV loans rose to 0.88 from 0.85, and the effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages fell to 4.24% from 4.31%. Points for 80% LTV loans fell to 0.51 from 0.56, and the effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs fell to 4.11% from 4.12%. Points for 80% LTV loan reports rose to 0.62 from 0.46, and the effective rate increased from last week.
