Mortgage applications dropped 27%% on a seasonally adjusted basis for the two weeks ending Jan. 1, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The figures were adjusted to account for the Christmas and New Year's Day holidays.
The MBA's Market Composite Index, which measures mortgage loan application volume, fell 50% on an unadjusted basis from two weeks before.
Refinance application volume decreased 37% from two weeks ago. Purchase apps lowered 15% on a seasonally adjusted basis and 40% on an unadjusted basis. The same week last year, purchase apps were 22% higher, on an unadjusted basis.
Applications for Federal Housing Administration-insured loans raised eight basis points from one week before to 14.6%. The share of Veterans Affairs-guaranteed applications rose to 12.9% from 11.6% one week ago.
Refinancings as a share of all mortgage activity fell to 55.4% of total applications from 56.1% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) lifted to 4.2% from 4.19%; that was its highest level since July 2015. The 30-year jumbo ($417,000 or greater) fixed-rate mortgage increased two basis points to 4.09%.
