Mortgage applications fell 4.3% on a seasonally-adjusted basis from one week earlier, according to the Mortgage Bankers’ Association’s Weekly Mortgage Applications Survey for the week ending April 26th, 2019.
On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, fell 4% from the previous week. The Refinance Index fell by 5% over the same period. The seasonally-adjusted Purchase Index fell 4%, while the unadjusted Index fell 3%.
“Mortgage rates were lower last week – with the 30-year fixed rate declining to 4.42 percent – as concerns over global growth, particularly in Germany, outweighed more positive domestic news on first quarter GDP growth and business investment,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Applications to refinance and purchase a home both fell, but purchase activity still remained slightly above year ago levels. The drop in refinances were driven by fewer FHA and VA loan applications, which typically lag the movement of conventional loans.”
The refinance share of mortgage activity fell to 38.8% of total applications, down from 39.4% the previous week. The FHA share of total applications fell to 9.5% from 9.9%, the VA share fell to 10.9% from 11.3%, and the USDA share remained unchanged at 0.6%.
“The ARM share of applications decreased to 6.2%, its lowest share since August 2018,” Kan adds. “So far in 2019, we continue to see a preference for 7/1 ARMs, which account for around 36 percent of all ARM applications, followed by 10/1 and 5/1 ARMs. This is another indication that the few borrowers who choose to apply for ARM loans are electing to reap the benefit of lower rates, as well as some rate stability.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) fell to 4.42% from 4.46%. Points for 80% loan-to-value ratio (LTV) loans rose to 0.46 from 0.44 the previous week. (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 4.31% from 4.35%. Points for 80% LTV loans fell to 0.23 from 0.25, 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 4.39% from 4.49%. Points for 80% LTV loans fell to 0.47 from 0.57, and the effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages fell to 3.81% from 3.87% the previous week. Points for 80% LTV loans fell to 0.40 from 0.44, and the effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs fell to 3.81% from 3.92%. Points for 80% LTV loans rose to 0.54 from 0.28, and the effective rate decreased from last week.
