The average number of mortgage applications dropped 1.2 per cent on a seasonally adjusted basis despite a modest drop for interest rates, the Mortgage Bankers Association said Wednesday.
Applications volume has now dropped in four of the past five weeks according to the MBA, a trend that is a reversal from the beginning of 2014, when lower interest rates led to modest growth in applications.
On an unadjusted basis, the MBA said the market composite dropped 1 per cent from a week earlier. The refinance index fell 1 per cent, while the seasonally adjusted purchase index was also 1 per cent lower.
The average rate on 30-year fixed-rate mortgages with conforming loans slid to 4.5 per cent from 4.52 per cent the previous week. Rates on 30-year fixed-rate mortgages with jumbo-loan balances fell to 4.39 per cent from 4.41 per cent.
The average rate for 30-year fixed-rate mortgages backed by the Federal Housing Administration declined to 4.13 per cent from 4.18 per cent the prior week.
The average rate for 15-year fixed-rate mortgages slipped to 3.52 per cent from 3.53 per cent. The 5/1 ARM average declined to 3.09 per cent from 3.18 per cent.
Modest drop shown on Mortgage Bankers Association survey.
Published