Mortgage Applications Continue Slide

The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a drop of 4.8% in the group's seasonally adjusted composite index, compared with last week's decrease of 12%. Unadjusted, the composite index fell by 2%.

Applications for refinancing fell 6% (seasonally adjusted), while seasonally adjusted purchase applications increased by 1% from the previous week. Unadjusted, the purchase index fell 0.3%, compared with the previous week, and rose 6% compared with the same week a year ago.

The refinancing rate fell to 80% of total applications, down 1% from a week ago. About 96% of the applications were seeking fixed-rate loans, consistent with last week's reading.

The average contract interest rate for a conforming 30-year fixed-rate mortgage rose from 3.63% to 3.65%. The rate for a jumbo 30-year fixed-rate mortgage also rose, from 3.85% to 3.94%. The average interest rate for a 15-year fixed-rate mortgage decreased from 2.96% to 2.95%.

The contract interest rate for a 5/1 adjustable rate mortgage fell from 2.72% to 2.66%.

Paul Ausick

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