The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning, noting a week-over-week decrease of 1.6% in the group’s seasonally adjusted composite index for the week ending May 22. That followed a decrease of 1.5% for the week ending May 15. Mortgage loan rates increased on all five loan types.
On an unadjusted basis, the composite index decreased by 2% week-over-week. The seasonally adjusted purchase index dropped 1% compared to the week ended May 15. The unadjusted purchase index was unchanged for the week, and remained 14% higher year-over-year.
The MBA’s refinance index decreased 4% week-over-week, and the percentage of all new applications that were seeking refinancing fell from 52% to 51%.
Refinancings rose to as much as 75% of all mortgage loans made when interest rates fell below about 3.6% on the 30-year fixed loans. Unless rates reach that level again, it is highly unlikely that refinancing will regain a significant portion of the mortgage loan market.
Adjustable rate mortgage loans accounted for 6.4% of all applications, unchanged from the prior week.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.04% to 4.07%. The rate for a jumbo 30-year fixed-rate mortgage increased from 4.04% to 4.06%. The average interest rate for a 15-year fixed-rate mortgage rose from 3.26% to 3.29%.
The contract interest rate for a 5/1 adjustable rate mortgage loan increased from 2.99% to 3.04%. Rates on a 30-year FHA-backed fixed rate loan rose from 3.80% to 3.83%.
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