The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning. It noted an increase of 3.6% in the group’s seasonally adjusted composite index, following a rise of 5.3% for the previous week. Mortgage loan rates fell slightly or were unchanged from last week for all types of mortgage loans.
The seasonally adjusted purchase index decreased less than 1% from the prior week’s report. On an unadjusted basis, the composite index increased by 3% week-over-week. The unadjusted purchase index increased by less than 1% for the week, but remains 12% lower year-over-year.
Adjustable rate mortgage loans account for 8% of all applications, down a point from last week.
The MBA’s refinance index increased by 7%, after rising by 27% in the previous week. The share of refinancings rose from 49% to 50% of all applications.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage decreased from 4.43% to 4.39%. The rate for a jumbo 30-year fixed-rate mortgage was unchanged at 4.29%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.52% to 3.48%.
The contract interest rate for a 5/1 adjustable rate mortgage loan slipped from 3.21% to 3.17%. Rates on a 30-year FHA-backed fixed rate loan fell from 4.13% to 4.09%.
Home price increases have begun to moderate and that may lure more buyers into the market, provided that the inventory levels continue rising. The refinance index remains very low, down about 74% from the same time a year ago.
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