On an unadjusted basis, the index decreased 4% compared with the previous week.
The refinance index decreased 4% from the previous week and was 42% higher than the same week one year ago. The refinance share of mortgage activity remained unchanged at 37.3% of total applications from the previous week.
“Refinance activity dipped again, as mortgage rates remained close to 7%, and borrowers hold out for a bigger decline in rates,” commented Joel Kan, MBA’s vice president and deputy chief economist. “Given the pullback in refinancing, the average loan size for refinances declined to just under $290,000, the lowest level in three months.”
The seasonally adjusted purchase index decreased 4% from one week earlier. The unadjusted purchase index decreased 3% compared with the previous week and was 3% higher than the same week one year ago.
“Mortgage rates were little changed last week, with the 30-year fixed rate at 6.89%. Mortgage application activity, particularly for home purchases, continues to be subdued by broader economic uncertainty and signs of labor market weakness, dropping to the slowest pace since February,” said Kan. “Even with the spring homebuying season underway, purchase applications decreased, as conventional and VA applications saw declines of 6% and 4%, respectively. With slowly-increasing housing inventory in many markets and first-time homebuyers still in the mix, FHA purchase applications fared better with only a slight decline. Overall, purchase applications continue to run ahead of last year’s pace.”
The adjustable-rate mortgage (ARM) share of activity decreased to 7.4% of total applications. The FHA share of total applications, meanwhile, remained unchanged at 16.7% from the week prior. The VA share of total applications decreased to 13.1% from 13.4% the week prior, and the USDA share of total applications increased to 0.6% from 0.4% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased marginally to 6.89% from 6.90%. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances decreased to 6.88% from 6.90%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.61% from 6.56%, while 15-year fixed-rate mortgages decreased to 6.17% from 6.20%. The average contract interest rate for 5/1 ARMs decreased to 5.89% from 6.01%.
