Mortgage applications decrease as rates rise further

Refinances led the decline

Mortgage applications decrease as rates rise further

There was another decline in mortgage applications in the week ending April 27, 2018 as rates continued higher.

The Mortgage Bankers Association’s weekly survey shows a 2.5% decrease in the Market Composite Index (seasonally adjusted.) It was down 2% unadjusted.

The refinance index was down 4% from the previous week. The purchase index was down 2% seasonally-adjusted and 1% unadjusted, but was 5% higher than a year earlier.

The refinance share of mortgage activity decreased to 36.5 percent of total applications, its lowest level since September 2008, from 37.2 percent the previous week.

The adjustable-rate mortgage (ARM) share of activity increased to 6.7% of total applications.

FHA share of total applications increased to 10.3% from 10.2% a week earlier. The VA share of total applications increased to 10.2% from 10.1% and the USDA share of total applications remained unchanged at 0.8%.

Rates increased for all loan types
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to its highest level since September 2013, 4.80% from 4.73%, with points increasing to 0.53 from 0.49 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) increased to its highest level since September 2013, 4.69% from 4.64%, with points increasing to 0.42 from 0.39 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to its highest level since July 2011, 4.81% from 4.71%, with points decreasing to 0.78 from 0.79 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since February 2011, 4.21% from 4.13%, with points decreasing to 0.49 from 0.52 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.