Mortgage applications fell by 2.7% on a seasonally-adjusted basis for the week ending January 18th, 2019, according to the Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey.

On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, fell by 0.3% from one week earlier. The Refinance Index fell by 5% from the previous week, as well. The seasonally-adjusted Purchase Index fell by 2%, while the unadjusted Purchase Index rose 4%.

“Mortgage application activity cooled off last week after two consecutive weeks of sizeable increases. Both purchase and refinance applications saw declines but remained at healthy levels, with the purchase index remaining close to a nine-year high, and the refinance index hovering near its highest level since last spring,” says Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Reversing the recent downward trend, borrowers saw increasing rates for most loan types last week, as better-than-expected unemployment claims, easing trade tensions and stabilization in the equity markets ultimately led to a rise in Treasury rates.”

The refinance share of mortgage activity fell to 44.5% of total applications from 46.8% the previous week. The adjustable-rate mortgage (ARM) share of activity fell to 8.3% of all applications. The FHA share fell to 10.5% from 10.9%, the VA share fell to 10.3% from 10.4%, and the USDA share fell to 0.4% from 0.5%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) rose to 4.75% from 4.74%. Points for 80% loan-to-value ratio (LTV) loans fell to 0.44 from 0.45. (All 80% LTV loan reports include the origination fee.) The effective rate is unchanged.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) rose to 4.59% from 4.53%. Points for 80% LTV loans fell to 0.25 from 0.31, and the effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose to 4.82% from 4.76%. Points for 80% LTV loans rose to 0.62 from 0.52, and the effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages fell to 4.12% from 4.13%. Points for 80% LTV loans rose to 0.53 from 0.45, and the effective rate increased from last week.

The average contract interest rate for 5/1 ARMs rose to 4.12% from 4.08%. Points for 80% LTV loans rose to 0.42 from 0.32, and the effective rate increased from last week.