Although rising on an annual bias, mortgage applications fell slightly for the week ending May 10, 2019, according to the Mortgage Bankers Association.
According to MBA’s weekly Mortgage Applications Survey, on an unadjusted basis, the Market Composite Index slid 0.6% from the previous week.
“Purchase applications declined slightly last week but still remained almost 7% higher than a year ago,” MBA Vice President of Economic and Industry Forecasting Joel Kan said. “Despite the third straight decline in mortgage rates, refinance applications decreased for the fifth time in six weeks, albeit by less than 1%.”
“It’s worth watching if ongoing global trade disputes lead to increased anxiety about the economy, which could cause some potential homebuyers to put off their home search until the uncertainty is resolved,”Kan said.
The Refinance Index fell 1% from the previous week and the unadjusted Purchase Index also declined 1% from a week ago but remained 7% higher than the same week in 2018. Lastly, the seasonally adjusted Purchase Index retreated 1% from the week before.
Here’s a more detailed breakdown of this week’s mortgage application data:
- The refinance share of mortgage activity held its ground at last week’s 37.9%.
- The adjustable-rate mortgage share of activity fell to 6.3% of total applications.
- The Federal Housing Administration‘s share of mortgage apps moderately increased from last week’s 9.5% to 10.1%.
- The Veterans Affairs‘ share of applications moved backward to 9.5% from last week’s 10.1%.
- The Department of Agriculture‘s share of total applications remained unchanged from last week’s 0.6%.
- Mortgage interest rates for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) slid from 4.41% to 4.40%.
- The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) decreased from last week’s 4.27% to 4.24%.
- The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA declined from last week’s 4.44 to 4.32%.
- The average contract interest rate for 15-year fixed-rate mortgages also retreated to 3.78% from 3.81% the week prior.
- The average contract interest rate for 5/1 ARMs fell to 3.82% from last week’s 3.88%.