Mortgage applications fell by 0.6% on a seasonally-adjusted basis over the week ending May 10th, 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 1% from the previous week. The Refinance Index fell by 1% over the same period, and the seasonally-adjusted and unadjusted Purchase Indices also fell by 1%.
“Purchase applications declined slightly last week but still remained almost 7% higher than a year ago,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Despite the third straight decline in mortgage rates, refinance applications decreased for the fifth time in six weeks, albeit by less than 1 percent. It’s worth watching if ongoing global trade disputes lead to increased anxiety about the economy, which could cause some potential home buyers to put off their home search until the uncertainty is resolved.”
The refinance share of mortgage activity remained unchanged this week at 37.9%. The adjustable-rate mortgage (ARM) share fell to 6.3% of total applications. The FHA share rose to 10.1% from 9.5% the previous week, the VA share fell to 10.6% from 11.1%, and the USDA share remained unchanged at 0.6%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) fell to 4.40% from 4.41% last week. Points for 80% loan-to-value ratio (LTV) loans fell to 0.40 from 0.47 the previous week. (All 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 4.24% from 4.27%. Points for 80% LTV loans rose to 0.27 from 0.23, 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 4.32% from 4.44%. Points for 80% LTV loans fell to 0.49 from 0.56, and the effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages fell to 3.78% from 3.81%. Points for 80% LTV loans rose to 0.43 from 0.42, and the effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs fell to 3.82% from 3.88%. Points for 80% LTV loans rose to 0.44 from 0.26, and the effective rate increased from last week.
