Mortgage application volume fell 5% last week on a seasonally adjusted basis, as refinance applications showed a decline for the third straight week, according to new figures released by the Mortgage Bankers Association.
Refinancing applications fell by over 6.4% when compared to the previous week. On the other hand purchase application volume rose by 1.4% on a seasonally adjusted basis from last week. However it is down 28% from the same week last year.
In terms of market share, refi applications still are dominating the marketplace, at 81.3% of all new loan activity, down from 82.3% the prior week. MBA tracks activity through its proprietary application index.
However, interest rates on 30-year and 15-year fixed-rate loans did not move in lockstep during the survey period.
MBA reported that the average contract interest rate for a 30-year fixed-rate mortgage increased by three basis points to 4.28% from 4.25% the week prior. Points increased to 1.07 from 1.00 (including the origination fee) for loans with an 80% loan-to-value ratio.
Meanwhile, the average contract interest rate for a 15-year FRM decreased by three bps during the week to 3.64% with points rising to 1.08 from 0.96.
