
Mortgage applications fell by 3.3% on a seasonally-adjusted basis over the week ending May 24th, 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 4% from the previous week. The Refinance Index fell 6% over the same period. The seasonally-adjusted Purchase Index fell 1%, while the unadjusted Index fell 3%.
“Concerns over European economic growth and ongoing uncertainty about a trade war with China were some of the main factors that kept mortgage rates low last week. Even with lower rates on three of the five surveyed loan types, refinance activity fell 6%, essentially reversing an 8 percent increase the week before,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Purchase applications decreased for the third straight week, but remained more than 7% higher than a year ago. It is possible that the trade dispute is causing potential homeowners to hold off on buying, with the fear that further escalation – or the lack of resolution – may have adverse impacts on the economy and housing market.”
The refinance share of mortgage activity fell to 39.7% of total applications, down from 40.5% the previous week. The adjustable-rate mortgage (ARM) share fell to 6.6% of applications. The FHA share rose to 9.6% from 9.4%, the VA share rose to 11.2% from 11.0%, and the USDA share rose to 0.7% from 0.6%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) remained unchanged at 4.33%. Points for 80% loan-to-value ratio (LTV) loans fell to 0.42 from 0.43 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 4.18% from 4.24%. Points for 80% LTV loans fell to 0.23 from 0.35, 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 4.33% from 4.34%. Points for 80% LTV loans fell to 0.43 from 0.47, and the effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages fell to 3.73% from 3.78%. Points for 80% LTV loans remained unchanged at 0.40, and the effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs rose to 3.74% from 3.57%. Points for 80% LTV loans fell to 0.34 from 0.37, and the effective rate increased from last week.