Application volume falls as rates rise during a wild week
Rising rates, largely tied to the stock market turmoil, took their toll on mortgage application volume during the past week.
The market composite index, a measure of mortgage loan application volume, decreased 4.1% on a seasonally adjusted basis from one week earlier, according to the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ending Feb. 9 found that the refinance index decreased 2% from the previous week.
The refinance application share increased to 46.5% from 46.4% the previous week.
The seasonally adjusted purchase index decreased 6% from one week earlier. The unadjusted purchase index decreased 3% compared with the previous week and was 4% higher than the same week one year ago.
Adjustable-rate loan application activity increased to 6.3% from 6.1%, while the share of Federal Housing Administration-guaranteed loans decreased to 10.1% from 10.4% the week prior.
The share of applications for Veterans Affairs-guaranteed loans remained unchanged at 10.1% percent from the week prior and the U.S. Department of Agriculture/Rural Development share increased to 0.8% from 0.7% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to its highest rate since January 2014, 4.57%, from 4.5%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100), the average contract rate increased to its highest rate since January 2014, 4.55%, from 4.47%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased 7 basis points to 4.54%. For 15-year fixed-rate mortgages the average rate increased 8 basis points to 4%.
The average contract interest rate for 5/1 ARMs decreased to 3 basis points 3.74%.