The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a drop of 2.6% in the group’s seasonally adjusted composite index, following a drop of 4% for the previous week. The pace of mortgage loan interest rate increases slowed, however, as some rates fell for some types of loans for the first time in several weeks.
The seasonally adjusted purchase index increased by 1% from the most recent report. On an unadjusted basis, the composite index rose by 22% week-over-week. The unadjusted purchase index increased by 26% for the week, and is up about 5% year-over-year.
The MBA’s refinance index fell by 1%, after sliding 4% in the previous week.
The share of refinancings fell to 63%, remaining at its lowest level in more than two years. Adjustable rate mortgage loans account for 7% of all applications, flat with the prior week.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage remained unchanged at 4.68%. The rate for a jumbo 30-year fixed-rate mortgage decreased from 4.86% to 4.81%. The average interest rate for a 15-year fixed-rate mortgage fell from 3.76% to 3.3.70%.
The contract interest rate for a 5/1 adjustable rate mortgage loan fell from 3.40% to 3.39%.
Refinancings continue to slide, but the slight decline in mortgage loan rates is good news for buyers — and sellers. As more inventory comes on the market, home price increases will slow or reverse, making home purchases more affordable as well.