Fewer prospective borrowers applied for a mortgage last week, though purchase-money activity has strengthened over the past year. Government share was more narrow.
A seasonally adjusted 3 percent decline from the week that included the Martin Luther King Jr. holiday was recorded for the Market Composite Index for the seven days ended Jan. 26.
The index, which is
a measure of retail residential loan application volume, rose 12 percent from the week ended Jan. 19 when seasonal factors are ignored.
The Mortgage Bankers Association reported the index based on its Weekly Mortgage Applications Survey, which reportedly covers more than three-quarters of all applications.
A 3 percent dip was recorded for refinance applications. The share of overall activity that was refinance was 47.8 percent — the most narrow share since the week ended Aug. 11, 2017. Refinance share was 49.4 percent a week earlier and a year earlier.
Applications for loans to finance a home purchase decreased by a seasonally adjusted 3 percent, though there was a 15 percent week-over-week gain without adjustments and a 10 percent year-over-year increase.
At 10.7 percent, applications for loans insured by the Federal Housing Administration represented less than the prior week’s 11.4 percent share and 12.1 percent a year prior.
Also thinning was the share of applications for loans guaranteed by the Department of Veterans Affairs — to 10.1 percent from 10.9 percent.
VA share was 12.4 percent in the same week last year.
Applications for adjustable-rate mortgages accounted for 5.7 percent of total activity,
a broadening from 5.2 percent the preceding week but more narrow than 6.4 percent in the week ended Jan. 27, 2017.
Interest rates on jumbo mortgages were 7 basis points lower than conforming rates. The spread widened from 5 BPS in the last report
and was unchanged from the same seven days last year.
