Mortgage Applications Fall After Consecutive Gains

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Mortgage loan application volume dropped 2.3% on a seasonally adjusted basis for the week ended April 10 versus the previous week, the Mortgage Bankers Association said.

The purchase index also decreased, in this instance by 3%, during the same period of time. Adjustable-rate mortgage activity fell as well, to 5.4% of applications, while the refinance share ticked up slightly to 58%, according to the trade group.

The FHA and VA shares of total applications both increased, to 12.5% and 11.1%, respectively. The USDA share stayed put at 0.8% from the week before.

Unlike application volume, interest rates moved higher generally. The average contract interest rate for a conforming 30-year fixed-rate mortgage with a balance below $417,000 rose one basis point to 3.87% from the preceding week. For 30-year fixed conforming mortgages below $417,000, the average interest rate increased three basis points to 3.84% during that same time.

Furthermore, the average contract interest rate for 15-year fixed-rate mortgages increased to 3.16%, while the 5/1 ARM jumped six basis points to 2.82%. The only type of mortgage to experience a rate decrease was the FHA-backed 30-year fixed-rate mortgage, which had an average rate of 3.67% for the most recent week compared to 3.69% the week prior.

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