Mortgage application volume drops after rate hike

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Mortgage applications decreased 2.7% from one week earlier after the Fed announced a rate hike, according to the Mortgage Bankers Association.

The MBA's Weekly Mortgage Applications Survey for the week ending March 17 found that the refinance index decreased 3% from the previous week.

The refinance share of mortgage activity decreased to 45.1% of total applications from 45.6% the previous week.

The seasonally adjusted purchase index decreased 2% from one week earlier, while the unadjusted purchase index decreased 2% compared with the previous week and was 5% higher than the same week one year ago.

The adjustable-rate mortgage share of activity increased to 9% of total applications from 8.2%, while the Federal Housing Administration share decreased to 10.9% from 11.1% the week prior.

The VA share of total applications decreased to 10.1% from 11.1% and the USDA share remained unchanged at 0.9%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged at 4.46%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate decreased 4 basis points to 4.4%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased 4 basis points to 4.33%, while for 15-year fixed-rate mortgages, the average increased 2 basis points to 3.68%.

The average contract interest rate for 5/1 ARMs decreased to 3.41% from 3.45%.

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