Large Drop in Mortgage Applications Last Week

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House for Sale

The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a decrease of 6.4% in the group's seasonally adjusted composite index, following a rise of 3.4% for the previous week.

The seasonally adjusted purchase index fell by 10% from the last report. On an unadjusted basis, the composite index dropped by 5% week-over-week. The unadjusted purchase index is down 4% for the week and up 15% year-over-year.

The share of refinancings remained unchanged week-over-week at 78%.

The average contract interest rate for a conforming 30-year fixed-rate mortgage rose from 3.73% to 3.75%. The rate for a jumbo 30-year fixed-rate mortgage increased from 3.96% to 3.98%, its highest level since last September. The average interest rate for a 15-year fixed-rate mortgage fell from 3% to 3.01%, also the highest rate since September.

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

Home prices have risen as more buyers come into the market, and mortgage interest rates are rising as well. More homes will be coming on the market, perhaps putting some pressure on both prices and interest rates.

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