The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a decrease of 0.4% in the group’s seasonally adjusted composite index, following a rise of 5.5% for the previous week. Mortgage loan rates once again fell across the board last week.
The seasonally adjusted purchase index decreased by 6% from last week’s report. On an unadjusted basis, the composite index fell by 1% week-over-week. The unadjusted purchase index decreased by 6% for the week and is down 3% year-over-year.
The MBA’s refinance index rose by 3%, after increasing by 5% in the previous week.
The share of refinancings rose by two points to 63% of all applications. Adjustable rate mortgage loans account for 6% of all applications.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage decreased from 4.62% to 4.49%. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.66% to 4.53%. The average interest rate for a 15-year fixed-rate mortgage fell from 3.68% to 3.55%, the lowest rate posted since June.
The contract interest rate for a 5/1 adjustable rate mortgage loan dropped from 3.39% to 3.26%.
Interest rates slipped slightly again last week but purchase applications stalled. The other data point worth noting this week is that the unadjusted purchase index fell below last year’s level. The combination of higher house prices, higher mortgage loan rates and the end of the summer buying season likely will slow home purchases somewhat. Refinancings picked up last week, their first gain in nearly two months.