“Mortgage rate movements were mixed last week, with the 30-year fixed rate decreasing slightly to 6.42%. Mortgage applications were lower than the week before, as conventional and VA applications saw declines,” said Joel Kan, MBA’s vice president and deputy chief economist.
“FHA applications saw a stronger week, and FHA refinance applications in particular increased 12% as the FHA rate stayed more than 10 basis points lower than the conventional fixed rate. Purchase applications declined for the third consecutive week but remained 20% ahead of last year’s pace as improving inventory conditions in certain markets continue to maintain homebuyer interest,” Kan noted.
The refinance share of mortgage activity increased to 53.6% of total applications from 53.3% the previous week. The refinance index, however, decreased 1% from the previous week and was 59% higher than the same week one year ago.
The seasonally adjusted purchase index decreased 3% from one week earlier. The unadjusted purchase index decreased 2% compared with the previous week and was 20% higher than the same week one year ago.
By product, the adjustable-rate mortgage (ARM) share of activity decreased to 9.3% of total applications. The FHA share of total applications increased to 20.5% from 18.5% the week prior, while the U.S. Department of Veterans Affairs (VA) share of total applications decreased to 14.9% from 16.3%. The U.S. Department of Agriculture (USDA) share of total applications remained unchanged at 0.4%
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.42% from 6.43% and rates for 30-year fixed-rate mortgages with jumbo loan balances decreased to 6.47% from 6.60%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 6.19%. The average rate for 15-year fixed-rate mortgages remained unchanged, too, at 5.77%.
The only average contract interest rate that saw an increase was for 5/1 ARMs, which bumped up to 5.63% from 5.49%.
