Another Week of Decreasing Mortgage Applications

The volume of mortgage applications declined by 1.5% in the week ended May 15th from a week earlier, according to the Weekly Mortgage Applications Survey of the Mortgage Bankers Association.

The Market Composite Index, which measures the volume of applications, went down 1.5% on a seasonally adjusted basis compared to the week before. On an unadjusted basis, the Index decreased by 2.0%. The Index has experienced a decline for four weeks in a row.

The volume of applications for refinance underwent a small increase during the week ended May 15th. The Refinance Index rose 0.3% from the previous week. The share of refinance applications in the total volume of mortgage loan applications rose to 52% from 51% in the week ended May 8th.

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The volume of applications for home purchase loans experienced its largest drop since February of this year. The seasonally adjusted Purchase Index decreased by 4% compared to the week before. The unadjusted Index underwent a decline of 4% as well. Although it experienced decline, the unadjusted Purchase Index remained 11% higher compared to the same week of last year.

According to MBA’s chief economist, Mike Fratantoni, mortgage rates rose last week and Treasury rates reached a recent high in the middle of the week before declining at its end. Both purchase activity and the conventional refinance volume decreased in the week ended May 15th, but the volume of government refinance marked an increase. He also noted that the level of purchase applications was 11% higher compared to last year, but the decline during the week might indicate wary in borrowers due to the recent rise in mortgage rates.

The MBA’s survey revealed increase in the average contract interest rate of a 30-year fixed-rate conventional mortgage to 4.04% from 4% in the week before. It reached its highest level since December 2014.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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