The MBA’s Market Composite Index, which measures loan application volume, decreased 1.2% last week on a seasonally adjusted basis. On an unadjusted basis, the index fell 2% from the previous week. The Refinance Index was down 1%, and the seasonally adjusted Purchase Index dropped 1% from the week prior. On an unadjusted basis, the Purchase Index dropped 2%, and was 15% lower than the same week last year.
The refinance share of mortgage activity held steady at 52% of total applications. The adjustable-rate share also remained unchanged at 8%.
Fixed rates, meanwhile, dropped to their lowest levels in months. The average interest rate for 30-year fixed-rate mortgages with conforming loan balances dropped to 4.31% -- the lowest level since June 2013 -- from the previous week’s 4.33%. The average rate for 30-year FRMs with jumbo loan balances also hit its lowest level since June, dropping to 4.23% last week from the previous week’s 4.24%.
The average rate for 5/1 ARMS decreased to 3.13% last week from the previous week’s 3.14%.
Mortgage applications were down last week despite falling rates, according to data released by the Mortgage Bankers Association.