Mortgage Applications Decrease as Rates Continue to Rise
Mortgage application volume decreased 4% from one week earlier as interest rates on 30-year loans continued to rise, according to the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ending Dec. 9 found that the refinance index decreased 4% from the previous week.
The seasonally adjusted purchase index decreased 3% from one week earlier, while the unadjusted purchase index decreased 7% compared with the previous week and was 2% higher than the same week one year ago.
The market share of refi applications increased to 57.2% from 56.2% the previous week.
The adjustable-rate mortgage share of activity increased to 6.2% of total applications, while the Federal Housing Administration share increased to 11.6% from 11.3%.
The VA share decreased to 11.9% from 12.6% and the USDA share remained unchanged at 0.9%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since October 2014, 4.28%, from 4.27%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000), the average contract rate increased to its highest level since September 2014, 4.29%, from 4.22%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased 2 basis points to 4.02%, while for 15-year fixed-rate mortgages backed by the FHA, the average decreased 1 basis point to 3.52%.
The average contract interest rate for 5/1 ARMs decreased to 3.28% from 3.39%.