Mortgage Applications Decrease in MBA Weekly Survey

MBA NewsLink Staff

May 15, 2019

Mortgage application activity didn't move much from the previous week, dipping slightly as key interest rates largely held steady, the Mortgage Bankers Association's reported this morning in its Weekly Mortgage Applications Survey for the week ending May 10.

The Market Composite Index decreased by 0.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 1 percent compared to the previous week.

The unadjusted Refinance Index decreased by 1 percent from the previous week. The refinance share of mortgage activity remained unchanged from the previous week at 37.9 percent of total applications.

The seasonally adjusted Purchase Index decreased by 1 percent from one week earlier. The unadjusted Purchase Index decreased by 1 percent compared to the previous week and was 7 percent higher than the same week one year ago.

"Purchase applications declined slightly last week but still remained almost 7 percent higher than a year ago," said Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. "Despite the third straight decline in mortgage rates, refinance applications decreased for the fifth time in six weeks, albeit by less than 1 percent."

Kan noted global trade disputes could lead to increased anxiety about the economy, "which could cause some potential homebuyers to put off their home search until the uncertainty is resolved."

MBA said the FHA share of total applications increased to 10.1 percent from 9.5 percent the week prior. The VA share of total applications decreased to 10.6 percent from 11.1 percent the week prior. The USDA share of total applications remained unchanged from 0.6 percent the week prior.

The report said the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.40 percent from 4.41 percent, with points decreasing to 0.40 from 0.47 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) decreased to 4.24 percent from 4.27 percent, with points increasing to 0.27 from 0.23 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by FHA decreased to 4.32 percent from 4.44 percent, with points decreasing to 0.49 from 0.56 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.78 percent from 3.81 percent, with points increasing to 0.43 from 0.42 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 adjustable-rate mortgages decreased to 3.82 percent from 3.88 percent, with points increasing to 0.44 from 0.26 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The ARM share of activity decreased to 6.3 percent of total applications.

The survey covers more than 75 percent of all U.S. retail and consumer direct residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.

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