The Mortgage Bankers Association released its weekly report on mortgage applications this morning, noting a 2.5% decline in the group’s composite index compared with last week’s total. Applications for refinancing fell 3% (seasonally adjusted), while purchase applications decreased by about 0.8% from the previous week. Unadjusted, the purchase index dropped 3% compared with the same week a year ago.
Refinancings now account for 79% of total applications, down from 80% a week ago. About 95% of the applications were seeking fixed-rate loans.
The average contract interest rate for a conforming 30-year fixed-rate mortgage fell slightly from 3.80% to 3.78%. The rate for a jumbo 30-year fixed-rate mortgage also fell, from 4.06% to 4.05%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.12% to 3.10%.
The contract interest rate for a 5/1 adjustable rate mortgage also declined, from 2.68% to 2.64%.
There has been little change in the mortgage application rate for some time now. The purchase index for essentially has been moving sideways for nearly two years. Increases in home prices as distressed properties clear have boosted prospects for new home builders, but growth remains sluggish.