The Mortgage Bankers Association’s Market Composite Index, which measures loan application volume, dropped 3.5% on a seasonally adjusted basis from the previous week. On an unadjusted basis, the index was down 3%. The Refinance Index dropped 8% from the previous week.
The seasonally adjusted Purchase Index, meanwhile, was up 3% -- a spike driven mainly by a 4% increase in conventional purchase applications, according to the MBA. The unadjusted Purchase Index was up 3% from the previous week and down 17% from the same week a year ago.
The refinance share of mortgage activity dropped to 54% of total applications – the lowest level since April of 2010. The adjustable-rate mortgage share held steady at 8%.
The average interest rate for 30-year fixed-rate mortgages with conforming loan balances rose to 4.56%, the highest level since January, from the previous week’s 4.50%. the average rate for 30-year FRMs with jumbo loan balances increased to 4.45% from the previous week’s 4.39%.
The average rate for 15-year FRMs increased to 3.62% the highest level since January, from the previous week’s 3.52%.
The average rate for 5/1 ARMs rose to 3.22%, also the highest level since January, from 3.09% the previous week.
Mortgage applications were down last week even as purchase activity increased, according to data released today.