Mortgage application volume decreased by 5.6% on a seasonally adjusted basis for the week ended April 22 as the previous week's volume was boosted by consumers looking to beat the deadline for a Federal Housing Agency mortgage insurance premium increase, according to the Mortgage Bankers Association. The group added that the week's data was not adjusted to take Good Friday into account.
The seasonally adjusted Purchase Index decreased 13.6% to its lowest level since Feb. 25, driven by a 26.6% decrease in government purchase applications. Michael Fratantoni, MBA's vice president of research and economics, explained the decrease reverses a 20% increase in government mortgage loan purchase applications over a four week period, which was likely driven by borrowers attempting to avoid the FHA premium increase.
The Refinance Index decreased 0.6% from the previous week, but the market share of refi applications increased to 61.6% from 58.5%, one week prior. MBA tracks activity through its proprietary application index.
The average contract interest rate for 30-year fixed-rate mortgages decreased 3 basis points to 4.80% from 4.83%, with points decreasing to 1.01 from 1.06 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for the 15-year FRM decreased 4 basis points to 4.03% from 4.07%. Points decreased to 0.96 from 1.02.
