Applications drop again as rates rise

by Ryan Smith28 May 2015
Mortgage applications dropped again last week, according to data from the Mortgage Bankers Association.

The MBA’s Market Composite Index, which measures loan application volume, fell 1.6% on a seasonally adjusted basis last week. On an unadjusted basis, the index fell 2% from the week before. The Refinance Index decreased 4% from the previous week, and the seasonally adjusted Purchase Index dropped 1%. The unadjusted Purchase Index was essentially unchanged from the week before, and was 14% higher than the same week last year.

Refinance activity was also down, decreasing to 51% of total applications last week from 52% the week before. The adjustable-rate mortgage share of activity held steady at 6.4% of total applications.

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances rose to 4.07% last week from the prior week’s average of 4.04%. the average rate for 30-year FRMs with jumbo loan balances rose to 4.06% from the prior week’s average of 4.04%.

The average rate for 5.1 ARMs was also up, rising to 3.04% from last week’s average of 2.99%.