The Mortgage Bankers Association’s weekly survey shows a decrease of 2.3% on a seasonally adjusted basis, and a decrease of 4% on an adjusted basis.
There was a 2% increase in the refinance index while the purchase index was down 3% seasonally adjusted and down 5% unadjusted compared with a week earlier.
There was an increase in the share of refinance mortgages at 49.4% of total applications, up from 48.7% in the previous week.
The average contract rate for 30-year FRMs with conforming loan balances was at its lowest level since November 2016 at 4.11%, down from 4.12 a week earlier. The effective rate was unchanged.
The average contract rate for 30-year FRMs backed by the FHA was unchanged at 4.02% while the effective rate decreased. The average for jumbo loan balances increased to 4% from 3.99%, the effective rate increased.
For 15-year FRMs, the average contract rate decreased to 3.36% from 3.40% and again was at its lowest level since November 2016. The effective rate decreased.
And the average contract rate for 5/1 ARMs was 3.26%, down from 3.27% a week earlier. The effective rate increased.
More market update:
Mortgage applications were down 2.3% last week compared to the week before.