The MBA’s Market Composite Index, which measures loan application volume, dropped 4.1% on a seasonally adjusted basis from the prior week. On an unadjusted basis, the index was down 3%. The Refinance Index dropped 5%, while the seasonally adjusted Purchase Index dropped 2%. On an unadjusted basis, the Purchase Index dropped 1% from the previous week, but was still 14% higher than the same week a year ago.
The refinance share of mortgage activity dropped to 54.4% of total applications, a full percentage point down from the week prior. The adjustable-rate mortgage share rose to 5.2% of total applications, the MBA reported.
The average interest rate for 30-year fixed-rate mortgages with conforming loan balances rose from 3.83% to 3.85%. The average rate for 30-year FRMs with jumbo loan balances rose to 3.78% from the prior week’s average of 3.77%. Average rates for FHA
-backed 30-year FRMs rose to 3.66% from the previous week’s 3.64%.
Average rates for 5/1 ARMs were also up, spiking to 3.02% from the previous week’s 2.91%.
Mortgage applications dropped 4.1% last week from the week before as interest rates rose, according to new data from the Mortgage Bankers Association.