The volume of mortgage applications declined again during the week ending May 4 as average contract interest rates for various mortgages decreased, according to the Weekly Mortgage Applications Survey released by the Mortgage Bankers Association.
The Market Composite Index, a measure of mortgage loan application volume, slipped 0.4% on a seasonally adjusted basis. The index was unchanged on an unadjusted basis. The Refinance Index dipped 1% to its lowest level since October 2008. Meanwhile, the Purchase Index fell 0.2% on a seasonally adjusted and increased 0.4% on an unadjusted basis. The unadjusted Purchase Index was 3% higher than the same week one year ago.
Refinances accounted for 36.3% of all applications during the week. The share marks a decline from the previous 36.5% to its lowest level since September 2008. The share of adjustable-rate mortgages decreased to 6.5%.
FHA applications made up 10.1% of the total, down from 10.3% in the previous survey. The VA share of total applications increased to 10.4% from 10.2%. USDA applications accounted for 0.7% of activity, down from the previous share of 0.8%.
The 30-year fixed-rate mortgage with conforming loan balances saw its average rate fall to 4.78% from 4.8% during the period, with points decreasing to 0.50 from 0.53 for 80% loan-to-value ratio loans. Rates for the 30-year fixed-rate mortgage with jumbo loan balances decreased to 4.65% from 4.69%, with points decreasing to 0.36 from 0.42.
The average rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.8% from 4.81%, with points decreasing to 0.75 from 0.78. The 15-year fixed-rate mortgage average rate slipped to 4.2% from 4.21%, with points decreasing to 0.48 from 0.49. Rates for the 5/1 ARM fell to 4% from 4.03%, with points decreasing to 0.43 from 0.44.