Mortgage loan application volume declined during the first week of February compared to a week earlier as both refinance and purchase activity dropped.
The Mortgage Bankers Association reported that mortgage applications plummeted by 9% for the period ending Feb. 6. In the prior week, the market composite index increased 1.3% on a seasonally adjusted basis.
The refinance index fell 10% from the previous week, while the purchase gauge was down 7%, according to the Washington-based trade group.
Rising interest rates might have hindered overall mortgage loan application volume. The average contract interest rate for 30-year conforming loans rose by five basis points, to 3.84%. Meanwhile, 30-year jumbo loan balances above $417,000 were up eight basis points, to 3.9%.
Additionally, 30-year fixed-rate mortgages backed by the Federal Housing Administration elevated three basis points, to 3.72%. Furthermore, the average contract interest rate for 15-year fixed mortgages increased one basis point, to 3.15%.
The MBA’s survey covers over 75% of all U.S. retail residential mortgage applications.