Mortgage originators generated fewer new residential loan applications last week than in the prior week, and purchase financing led the decline.
Prospective borrowers for home loans submitted 3 percent fewer applications in the week that ended on Jan. 29 than they did the previous week.
The level of weekly mortgage application activity was based on the Market Composite Index. The index was adjusted for seasonal variations.
The Mortgage Bankers Association reported the index as part of its
Weekly Mortgage Applications Survey. The trade group says the survey covers more than three-quarters of all applications.
Without any seasonal adjustment, loan applications were up 11 percent from the previous seven-day period — a week than included the Martin Luther King holiday.
MBA said that applications for refinances nudged up less than a percent on a seasonally adjusted basis.
At the same time, refinance share widened to 59.2 percent from 59.0 percent.
On loans that will be utilized to finance the purchase of residential properties, applications fell 7 percent.
But without any seasonal adjustments, purchase activity increased 11 percent on a week-over-week basis and 17 percent on a year-over-year basis.
Applications for mortgages insured by the Federal Housing Administration accounted for 12.9 percent of overall activity. FHA share was fatter than 12.7 percent in the last report.
Department of Veterans Affairs loan applications made up another 11.1 percent of total applications. VA share was unchanged from the previous week.
At 5.9 percent, adjustable-rate mortgage share
thinned from 6.0 percent one week earlier.
Fixed interest rates on jumbo mortgages were 13 basis points less than on conforming loans. The jumbo-conforming spread was no different than one week previous.
