Mortgage applications fell by 3.5% from one week earlier on a seasonally-adjusted basis, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending April 12, 2019.
On an unadjusted basis, Market Composite Index, a measure of mortgage loan application volume, fell 3% from the previous week. The Refinance Index fell 8% over the same period. The seasonally-adjusted Purchase Index rose 1% from one week earlier, and the unadjusted index rose 2%.
“Mortgage applications decreased over the week, driven by a decline in refinances. With mortgage rates up for the second week in a row, it’s no surprise that refinancings slid 8 percent and average loan sizes dropped back closer to normal levels,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Purchase activity remained strong and increased slightly, reaching its highest level since April 2010. The spring buying season continues to be robust, with activity more than 7 percent higher than a year ago and up year-over-year for the ninth straight week.”
The refinance share of mortgage activity fell to 41.5% of total applications, down from 44.1% the previous week. The adjustable-rate mortgage (ARM) share fell to 6.6%. The FHA share fell to 9.4% from 9.6%, the VA share rose to 11.6% 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) rose to 4.44% from 4.40% the previous week. Points for 80% loan-to-value ratio (LTV) loans fell to 0.42 from 0.47. (All 80% LTV loan reports include the origination fee.) The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) rose to 4.33% from 4.28% the previous week. Points for 80% LTV loans fell to 0.23 from 0.28, and the effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose to 4.43% from 4.42%. Points for 80% LTV loans rose to 0.56 from 0.58, and the effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages rose to 3.84% from 3.83%. Points for 80% LTV loans rose to 0.45 from 0.42, and the effective rate increased from last week.
The average contract interest rate for 5/1 ARMs rose to 3.88% from 3.78%. Points for 80% LTV loans fell to 0.19 from 0.26, and the effective rate increased from last week.
