Home loan application volume fell 7.8 percent last week as interest rates rose, the Mortgage Bankers Association reported today.
The seasonally adjusted decline from the week before was led by an 8.7 percent decrease in the index that tracks refinancings, followed by a 6.9 percent decrease in purchase loans. As a result, the refi share of applications dipped from 48.7 percent two weeks ago to 48.2 percent last week, while the adjustable-rate mortgage (ARM) share increased from 8.3 percent to 10 percent.
Interest rates across all loan types were higher last week, MBA reported, as average rates on 30-year fixed-rate mortgages rose from 5.82 percent to 5.9 percent; rates on 15-year fixed loans gained from 5.38 percent to 5.42 percent; and rates on one-year ARMs climbed from 6.6 percent to 6.71 percent.
The points (loan fees expressed as a percent of the loan amount) that borrowers paid to attain these rates were mostly higher last week. Points on 15-year loans gained from 1.09 to 1.14 and increased from 1.31 to 1.35 on one-year ARMs while dipping from 1.23 to 1.12 on 30-year loans.
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.
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