After trending upward for three straight weeks, mortgage applications dipped 2.6 percent in the week ending Jan. 26, 2018, according to the Mortgage Bankers Association’s (MBA) latest Weekly Mortgage Applications Survey. The survey also indicated that average mortgage contract interest rates increased across all loan types.
The decrease was on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Market Composite Index, which measures mortgage loan application volume, increased 12 percent compared with the previous week.
The survey also noted a seasonally adjusted 3 percent decrease in refinances and purchases. However, the unadjusted figure for purchases increased 15 percent compared with the previous week and was 10 percent higher than the same week the previous year.
Refinances, Federal Housing Administration (FHA) loans and Veterans Administration (VA) loans saw declines in total mortgage market share from the week prior. The FHA market share decreased to 10.7 percent from 11.4 percent, the VA share decreased to 10.1 percent from 10.9 percent.
The 47.8 percent market share for refinances marks the lowest level for such loans since August 2017, following a 1.6 percent drop from the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.7 percent of total applications.
The market share for United States Department of Agriculture (USDA) loans remained unchanged at 0.8 percent.
The survey also noted jumps in average contract interest rates for both 15-and 30-year fixed-rate mortgages, as well as ARMs.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to its highest level since March 2017 – 4.41 percent from 4.36 percent.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) increased to its highest level since March 2017 – 4.34 percent from 4.31 percent.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to its highest level since September 2013 – 4.40 percent from 4.37 percent.
The average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since April 2011 – 3.85 percent from 3.81 percent.
The average contract interest rate for 5/1 ARMs increased to its highest level since March 2011 – 3.79 percent from 3.70 percent.