The MBA’s Market Composite Index, which measures loan application volume, dropped 3.5% on a seasonally adjusted basis last week. On an unadjusted basis, the index was down 3% compared to the week before. The Refinance Index was down 6% from the previous week, and the seasonally adjusted Purchase Index was down 0.2%. On an unadjusted basis, the Purchase Index was up 0.1% from the week prior, and was 12% higher than the same week a year ago.
The refinance share of mortgage activity dropped to 51% of total applications, its lowest level since May of 2014. The adjustable-rate mortgage share rose to 6.3% of total applications. Meanwhile, the average loan size for purchase applications hit a survey high of $298,500.
The average interest rate for 30-year fixed-rate mortgages with conforming loan balances rose to 4%, its highest level since March. The average rate for 30-year FRMs with jumbo loan balances also hit its highest level since March, rising to 3.99% from the previous week’s average of 3.91%.
The average rate for 5/1 ARMs rose to 3% -- also its highest level since March – from 2.87% the week before.
Mortgage applications dropped 3.5% last week from the week before, according to data from the Mortgage Bankers Association.