Overall home loan purchases dropped 5.2 percent last week on a seasonally adjusted basis, as rising long-term interest rates brought purchase mortgages down from their record high a week earlier, according to the Mortgage Bankers Association’s weekly survey.
The MBA seasonally adjusted purchase index decreased by 10 percent to 451.6 from 501.6 the previous week. The seasonally adjusted refinance index decreased by 0.9 percent to 3,296.7 from 3,327.3 one week earlier.
The refinance share of mortgage activity increased to 58.5 percent of total applications from 57.7 percent the previous week. The adjustable-rate-mortgage share of activity decreased to 26.3 percent from 27.8 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.58 percent from 5.55 percent one week earlier. Points including the origination fee increased to 1.47 from 1.32 the previous week for 80 percent loan-to-value ratio loans.