Refi Application Share Is at Seven-Plus-Year Low: MBA

The share of refinance applications is at its lowest level in over seven and a half years, according to the Mortgage Bankers Association.

On an unadjusted basis, refinance application volume increased 2% from the previous week. But the refi share of total applications decreased to 47.9%, its lowest level since June 2009, from 49.4% the previous week, according to the MBA's survey for the week ended Feb. 3.

Total application activity increased 2.3% on a seasonally adjusted basis from one week earlier.

The seasonally adjusted purchase index increased 2% from one week earlier, while the unadjusted purchase index increased 9% compared with the previous week and was 4% higher than the same week one year ago.

The adjustable-rate mortgage share of activity increased to 6.9% from 6.4%, while the Federal Housing Administration share decreased to 11.9% from 12.1% the week prior.

The VA share of total applications increased 3 basis points to 12.7% and the USDA share of total applications remained unchanged at 0.9%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,000 or less) decreased to 4.35% from 4.39%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,000), the average contract rate decreased to 4.27% from 4.32%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased 1 basis point to 4.16%, while for 15-year fixed-rate mortgages backed by the FHA, the average decreased 6 basis points to 3.55%.

The average contract interest rate for 5/1 ARMs increased to 3.39% from 3.33%.

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