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Mortgage Apps Drop Nearly Five Percent

by Ben Heichman

mortgage-bankers-associationMortgage applications decreased 4.7 percent last week, according to the data from the latest Mortgage Bankers Association’s (MBA) survey.

The Market Composite Index, which measures mortgage loan application volume, dipped 4.7 percent. Similarly, the Refinance Index decreased 5 percent from the previous week to its lowest level since Dec. 2014.

The seasonally unadjusted Purchase Index decreased 4 percent from a week ago, and the unadjusted Purchase Index decreased 5 percent.

The refinance share of mortgage activity decreased to 48.9 percent of total applications, from 49 percent the previous week, while the adjustable-rate mortgage (ARM) share of activity remained still at 7 percent of total applications.

At the same time, mortgage rates have increased. The average contract interest rate for 30-year fixed rate mortgages with conforming loan balances ($417,000 or less) increased 4.26 percent, the highest level since Oct. 2014. Also, the average contract interest rate for 30-year fixed rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.21 percent, another eight-month high.

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