Mortgage

MBA: Mortgage refinances drop to 18-year low

But mortgage rates continue to increase

Mortgage applications continued last week’s decreasing trend, falling 2.6% from last week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending May 18, 2018.

On an unadjusted basis, the index increased 3% from last week.

The Refinance Index dropped 4% from the previous week, the lowest since December 2000. The Purchase Index also decreased, falling 3% from last week, but is still 3% higher from this time last year.

The refinance share of mortgage activity decreased from last week’s 35.9% to 35.7% of total applications, still its lowest level since September 2008.

The adjustable-rate mortgage share of activity increased to 6.8% of total applications.

The Federal Housing Administration remained unchanged from the prior week, and the Veterans Affairs' share of applications decreased from 10.3% last week to 9.8%.

The Department of Agriculture share of total applications remained unchanged from last week at 0.8% this week.

The MBA reported mortgage interest rates for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased from last week’s 4.77% to 4.86%, the highest rate since April 2011. 

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) increased from 4.73% last week to 4.81%, also its highest point since September 2013.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased from last week’s 4.78% to 4.90% this week, the highest level since May 2011.

The average contract interest rate for 15-year fixed-rate mortgages increased from last week’s 4.20% to 4.31% this week, the highest share since February 2011.

Lastly, the average contract interest rate for 5/1 ARMs increased to 4.12%, up from 4.09% last week, hitting an all-new survey high.

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