New Mortgage Applications Drop 5%

Applications for new mortgages dropped -5% last week according to the Mortgage Bankers Association. Refinancings also fell by -5.2%. The figures are adjusted to account for the Martin Luther King Jr. holiday; unadjusted, new mortgage applications fell by more than -13%.

The 4-week seasonally adjusted moving average of the index was 4.12%.

Interest rates also rose, with 30-year conforming loans rising from 4.06% to 4.11%. The interest rate on 30-year FHA-backed mortgages rose from 3.91% to 3.97%. Only 30-year jumbo mortgage rates fell, from 4.40% to 4.39%. Interest on a 15-year loan rose from 3.33% to 3.40%.

The weekly rate of new mortgage applications had jumped 20% in the previous week.