Mortgage application volume fell 10.5% last week on a seasonally adjusted basis, as interest rates for fixed-rate loans increased for the first time in six weeks, according to new figures released by the Mortgage Bankers Association.
Refinancing applications fell by over 11% when compared to the previous week, while purchase application volume declined by 6.7% on a seasonally adjusted basis from last week and over 29% from the same week last year.
But even with the increase in rates, they are still low enough where the share of refi applications dominated the marketplace, at 82.4% of all new loan activity, down from 83.1% the prior week. MBA tracks activity through its proprietary application index.
MBA reported that the average contract interest rate for a 30-year fixed rate mortgage increased by 13 basis points to 4.34% from 4.21% the week prior. Points decreased to 0.81 from 1.02 (including the origination fee) for loans with an 80% loan-to-value ratio.
Meanwhile, the average contract interest rate for a 15-year FRM increased by 12 bps during the week to 3.74% with points decreasing to 1.00 from 1.06.
