Real estate purchases cool for third week

Overall mortgage applications fell for the third consecutive week in the Mortgage Bankers Association's latest survey, down 7.3 percent on a seasonally adjusted basis from the week before.

The seasonally adjusted purchase index decreased by 7.9 percent to 391.7 from 425.1 the previous week, and the refinance index decreased by 6.5 percent to 1,636.7 from 1,751 one week earlier.

The refinance share of mortgage activity decreased to 41.2 percent of total applications from 42.1 percent the previous week. The adjustable-rate-mortgage share of activity decreased to 29.6 percent of total applications from 29.8 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages remained at 6.25 percent, with points including the origination fee increasing to 1.34 from 1.23 for 80 percent loan-to-value ratio loans. 

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.92 percent from 5.84 percent. Points including the origination fee decreased to 1.17 from 1.28 for 80 percent loan-to-value ratio loans.

The average contract interest rate for one-year adjustable-rate mortgages increased to 5.52 percent from 5.48 percent. Points including the origination fee increased to 0.99 from 0.96 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. The 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.

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