The share of refinance applications fell under 50%, a sign the industry could be shifting to a predominantly purchase market.
The market share of refi applications decreased to 49.4% from 50% the previous week, according to the Mortgage Bankers Association's weekly survey for the week ended Jan. 27.
It is the first time the refi share has been under 50% since
Total application volume decreased 3.2% and the refinance index decreased 1%
The seasonally adjusted purchase index decreased 6% from one week earlier, while the unadjusted purchase index increased 12% compared with the previous week and was 2% higher than the same week one year ago.
The adjustable-rate mortgage share of activity increased to 6.4% from 5.7%, while the Federal Housing Administration share decreased to 12.1% from 13.6%.
The VA share of total applications increased 2 basis points to 12.4% and the USDA share of total applications remained unchanged at 0.9% from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,000 or less) increased to 4.39% from 4.35%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,000), the average contract rate increased to 4.32% from 4.28%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased 2 basis points to 4.17%, while for 15-year fixed-rate mortgages backed by the FHA, the average increased 4 basis points to 3.61%.
The average contract interest rate for 5/1 ARMs decreased to 3.33% from 3.41%.
