Falling interest rates last week weren’t enough to sustain home purchases and refinancings, as overall mortgage application volume declined, the Mortgage Bankers Association reported today.

The market composite index, a measure of home loan application volume, dropped 5.2 percent last week, falling to 606.6 on a seasonally adjusted basis from 639.8 one week earlier.

The index that tracks refinancings was down 5.4 percent, cutting the refi share of mortgage activity last week down to 44.9 percent. The purchase index saw a 4.8 percent decline, and has now fallen for three weeks in a row.

Borrowing costs were mostly lower last week, with the average contract interest rate for 30-year fixed-rate mortgages slipping to 6.19 percent and the rate on 15-year fixed-rate loans sinking to 5.88 percent. The average one-year adjustable-rate mortgage (ARM) rate inched up to 5.81 percent.

Points, which are loan-processing fees expressed as a percent of the total loan amount, averaged 0.88 on the 30-year loans, 1.03 on the 15-year, and 0.88 on one-year ARMs. Statistics are based on loan-to-value ratios of 80 percent.

The adjustable-rate mortgage share of activity remained unchanged at 21.2 percent of total applications from 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
Will you attend ICLV virtually or in-person? The agenda is packed with stellar speakers and sessions.Learn More×
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