Mortgage applications decreased 4.1% from one week earlier as the refinance share hit an eight-plus-year low, according to the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ending May 12 found that the refinance index decreased 6% from the previous week.
Only 41.1% of total applications were for refis, the lowest level since September 2008, from 41.9% the previous week.
The seasonally adjusted purchase index decreased 3% from one week earlier, while the unadjusted purchase index decreased 3% compared with the previous week, but the unadjusted index was 9% higher than the same week one year ago.
Adjustable-rate mortgage applications decreased 1 basis point to 8.1% of the total, while the Federal Housing Administration share increased 1 basis point to 10.6% from the week prior.
The VA share decreased 1 basis point to 10.7% and the USDA share remained unchanged at 0.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged at 4.23%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate increased 1 basis point to 4.23%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.11% from 4.09%, while for 15-year fixed-rate mortgages, the average increased 1 basis point to 3.51%.
The average contract interest rate for 5/1 ARMs decreased to 3.3% from 3.36%.