Overall mortgage applications dipped 0.8 percent last week on a seasonally adjusted basis from the week before, with refinancings taking the biggest hit, the Mortgage Bankers Association reported today.
The seasonally adjusted purchase index increased by 0.1 percent to 414.8 from 414.6 the previous week, while the refinance index decreased by 2.2 percent to 1,466.1 from 1,499.4 one week earlier.
The refinance share of mortgage activity decreased to 35.5 percent of total applications from 35.7 percent the previous week. The adjustable-rate mortgage share of activity decreased to 29.6 percent of total applications from 30.7 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.73 percent from 6.61 percent, with points including the origination fee increasing to 1.14 from 1.13 for 80 percent loan-to-value ratio loans. This is the highest reported 30-year average rate since May 10, 2002.
Points, which are fees charged by lenders for loan processing, are equal to 1 percent of the total loan amount.
The average contract interest rate for 15-year fixed-rate mortgages increased to 6.37 percent from 6.27 percent. Points including the origination fee decreased to 1.10 from 1.13 for 80 percent loan-to-value ratio loans. This is the highest that the 15-year rate has been since April 2002.
The average contract interest rate for one-year adjustable-rate mortgages increased to 6.22 percent from 6.09 percent, with points including the origination fee increasing to 0.86 from 0.82 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.