Overall mortgage application activity tumbled last week as interest rates continued to climb, the Mortgage Bankers Association reported today.

The market composite index, which measures total home loan volume, dropped 7.3 percent last week on a seasonally adjusted basis from the week before, impacted strongly by a double-digit decrease in refinancings.

The index that tracks refinancings was down 13 percent from mid-May, which cut the refi share of mortgage activity to 39.7 percent of applications, and the purchase index sank 2.5 percent.

The adjustable-rate mortgage (ARM) share of activity decreased to 17.7 percent of applications from 18.1 percent the previous week, according to MBA.

Borrowing costs increased again last week, with the average contract interest rate for 30-year fixed-rate mortgages rising to 6.32 percent from 6.23 percent, the 15-year fixed rate up from 5.96 percent to 6.05 percent, and the one-year ARM growing from 5.72 percent to 5.74 percent.

Points, which are loan-processing fees expressed as a percent of the total loan amount, averaged 1.41 on the 30-year loans, 1.27 on the 15-year, and 1.09 on one-year ARMs. Statistics, which include the origination fee, are based on loan-to-value ratios of 80 percent.

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
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Time is running out to secure your Connect Now tickets at the lowest price. Don't miss out on a chance to grow yourself and your business.Learn More×
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