Real estate loan applications drop

Overall loan applications dropped by 4.4 percent last week on a seasonally adjusted basis, according to the Mortgage Bankers Association's weekly survey.

The MBA seasonally adjusted purchase index decreased by 4.2 percent to 435.4 from 454.5 the previous week. The seasonally adjusted refinance index decreased by 4.7 percent to 1,386.9 from 1,454.6 one week earlier.

The refinance share of mortgage activity remained at 33.4 percent of total applications. The adjustable-rate-mortgage share of activity increased to 33.9 percent of total applications from 33.5 percent one week earlier.

The average contract interest rate for 30-year fixed-rate mortgages remained at 6.21 percent. Points including the origination fee increased to 1.3 from 1.26 the previous week for 80 percent loan-to-value ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages remained at 5.61 percent. Points including the origination fee increased to 1.4 from 1.35 one week earlier for 80 percent loan-to-value ratio loans.

The average contract interest rate for one-year adjustable-rate mortgages increased to 4.18 from 4.1 percent one week earlier. Points including the origination fee increased to 1.04 from 1.01 the previous week for 80 percent loan-to-value ratio loans.

Washington, D.C.-based Mortgage Bankers Association is a national association representing the real estate finance industry.

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