The MBA’s Market Composite Index, which measures loan application volume, dropped 3.3% on a seasonally adjusted basis from the week prior. On an unadjusted basis, the index was down 3%. The Refinance Index fell 5% from the previous week, and the seasonally adjusted Purchase Index dropped 1%. On an unadjusted basis, the Purchase Index also dropped 1% from the previous week, but was still 25% higher than the same week in 2015.
The refinance share of mortgage activity fell from 55% last week to 53.9% this week. The adjustable-rate mortgage share held steady at 4.9%.
The average interest rate for 30-year fixed-rate mortgage with conforming loan balances edged down from 3.94% to 3.93%. The average rate for 30-year FRMs with jumbo loan balances also saw a slight drop, from 3.86% to 3.85%. FHA
-backed mortgages saw average rates fall from 3.77% to 3.74%.
Interest rates for adjustable-rate mortgages were also down. The average rate for a 5/1 ARM dropped to 3.13% this week from last week’s 3.23%.
Mortgage applications were down 3.3% this week, according to data from the Mortgage Bankers Association.