The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a drop of 1.2% in the group's seasonally adjusted composite index compared with last week's increase of 16.6%. Applications for refinancing fell 2% (seasonally adjusted), while seasonally adjusted purchase applications increased by 2% from the previous week. Unadjusted, the purchase index rose 3% compared with the previous week and rose 12% compared with the same week a year ago.
The refinancing rate fell slightly from last week's record highs, but refinancings still accounted for 83% of total applications, flat with a week ago. About 96.1% of the applications were seeking fixed-rate loans.
The average contract interest rate for a conforming 30-year fixed-rate mortgage rose slightly from 3.53% to 3.56%. The rate for a jumbo 30-year fixed-rate mortgage also fell, from 3.82% to 3.74%. The average interest rate for a 15-year fixed-rate mortgage decreased from 2.90% to 2.88%.
The contract interest rate for a 5/1 adjustable rate mortgage rose from 2.59% to 2.60%.
An MBA executive summed it up:
Refinance applications declined somewhat last week although volume is still near three-year highs, and purchase applications increased to the highest level since June, with both conventional and government volumes increasing," said Mike Fratantoni, MBA's Vice President of Research and Economics. "Rates on 30-year fixed-rate loans remain historically low, benefitting both prospective homebuyers and those seeking to refinance.