The number of mortgage applications fell last week as interest rates moved higher, the Mortgage Bankers Association reported today.

The market composite index, which measures total home loan application volume, was down 5.5 percent last week on a seasonally adjusted basis from the week before. Leading the decline was a 6.4 percent drop in the index that tracks refinancings, followed by a 5 percent decrease in the purchase loan index.

“Given the current turmoil in the mortgage market, week-to-week changes in the purchase applications index should be treated with a certain degree of caution,” Jay Brinkmann, MBA’s vice president of research and economics, said in a statement. “For example, the sudden exit of a major originator several weeks ago may have led to a bump up in applications over the last two weeks as those borrowers caught in the shutdown reapplied for mortgages at other institutions. The drop in applications we see here may be an indication that those borrowers have now been taken care of.”

Average interest rates continued to climb last week, with the rate on 30-year fixed-rate mortgages rising to 6.49 percent from 6.45 percent, the 15-year fixed edging up to 6.2 percent from 6.19 percent, and the one-year ARM rate growing to 5.84 percent from 5.81 percent.

Points, which are loan-processing fees expressed as a percent of the total loan amount, averaged 1.48 on the 30-year loans, 1.1 on the 15-year, and 1.05 on one-year ARMs. These points include the origination fee and are based on loan-to-value ratios of 80 percent.

The refinance share of mortgage activity remained unchanged Friday at 39.9 percent of total applications, according to MBA, while the ARM share of activity decreased to 18.6 percent from 21 percent the previous week.

The Mortgage Bankers Association survey covers approximately 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
The best event in real estate kicks off next week! Tickets are selling quickly.Register Now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription