Mortgage applications fell 2.6% from one week earlier after three weeks of steady increases, the Mortgage Bankers Association’s weekly mortgage applications survey for the week ending Jan. 29 said.
Last week’s results included an adjustment for the Martin Luther King holiday.
The refinance index slightly increased 0.3% from the previous week, moving to its highest level since October 2015, while the seasonally adjusted purchase index declined 7% from one week earlier.
As a whole, the refinance share of mortgage activity increased to 59.2% of total applications from 59% the previous week. On the other side, the adjustable-rate mortgage share of activity decreased to 5.9% of total applications.
The Federal Housing Administration’s share of total applications increased to 12.9% from 12.7% the week prior. The Veteran Affair’s share of total applications stayed the same at 11.1%. The United States Department of Agriculture’s share of total applications also stayed the same at 0.7%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) dropped to its lowest level since October 2015, falling to 3.97%, from 4.02%. This is the fourth straight weekly decrease for this rate.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.84 percent from 3.89% last week. This is the fourth straight weekly decrease for this rate and marks its lowest level since April 2015.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.80 percent from 3.83%
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.22 percent from 3.28 percent, while the average contract interest rate for 5/1 ARMs dipped to 3.00% from 3.09%.
