Refi Share of Applications Drops to Lowest Level Since 2009
Mortgage applications decreased 3.7% from one week earlier, according to the Mortgage Bankers Association.
The refinance share of mortgage activity decreased to 46.9% of total applications, its lowest level since June 2009, from 47.9% the previous week.
The MBA's Weekly Mortgage Applications Survey for the week ending Feb. 10 found that the refinance index decreased 3% from the previous week.
The seasonally adjusted purchase index decreased 5% from one week earlier, while the unadjusted purchase index increased 1% compared with the previous week and was 3% higher than the same week one year ago.
The adjustable-rate mortgage share of activity increased to 7.5% from 6.9%, while the Federal Housing Administration share remained unchanged at 11.9% from the week prior.
The VA share of total applications decreased to 11.8% from 12.7% and the USDA share of total applications increased to 1% from 0.9%
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased 3 basis points to 4.32%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate increased 1 basis point 4.28%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.12% from 4.16%, while for 15-year fixed-rate mortgages backed by the FHA, the average remained unchanged at 3.55%.
The average contract interest rate for 5/1 ARMs decreased to 3.34% from 3.39%.