Mortgage applications dropped 12% over the holidays, according to the latest data from the Mortgage Bankers Association. The data included adjustments to account for the Christmas holiday.
The MBA’s Market Composite Index, which measures loan application volume, tumbled 12% on a seasonally adjusted basis for the week ending Dec. 30 from two weeks earlier. On an unadjusted basis, the index dropped 48% from two weeks prior. The Refinance Index dropped 22%, and the seasonally adjusted Purchase Index fell 2%. On an unadjusted basis, the Purchase Index was down 41% from two weeks prior and was 1% lower than the same week in 2015.
The refinance share of overall mortgage activity increased to 52.2% last week from 51.8% the week prior. The adjustable-rate mortgage share of mortgage activity dropped to 5.4% of total applications.
Mortgage rates, meanwhile, eased somewhat. The average rate for 30-year fixed-rate mortgages with conforming loan balances dropped to 4.39% from 4.45% the previous week. The average rate for 30-year FRMs with jumbo loan balances dropped to 4.37% from 4.41%.
The average rate for 5/1 ARMs was also down, dropping to 3.28% last week from the prior week’s 3.41%.
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