Loan originators were less busy last week completing mortgage applications on behalf of prospective borrowers thanks to slowing purchase financing. Government share was unchanged, and the jumbo-conforming spread thinned.
A seasonally adjusted 2 percent decline from the previous seven-day period was recorded for the Market Composite Index for the week that concluded on Aug. 10.
But when seasonal adjustments are disregarded, the decline for the index — a measure of retail residential loan applications — increased to 3 percent.
Reporting the index Wednesday was the Mortgage Bankers Association. The index was derived from the Weekly Mortgage Applications Survey, which reportedly covers more than three-quarters of all applications.
Behind the slower activity were loans to finance home purchases, with applications declining a seasonally adjusted 3 percent. When seasonal factors are not considered, purchase activity slowed 4 percent from a week earlier and 3 percent from a year earlier.
No change from the week ended Aug. 4 was reported for refinance applications.
But refinance share did change, widening to 37.6 percent from 36.6 percent. Still, refinance share was more narrow than 47.8 percent in the week ended Aug. 11, 2017.
FHA share came in at 10.4 percent, the same as the preceding week. The share was more broad, though, than 10.2 percent twelve months ago.
Similarly, VA share remained at
10.6 percent but was wider than 10.5 percent in the report from a year ago.
Applications for adjustable-rate mortgages accounted for 6.2 percent of all applications. ARM share thinned from 6.3 percent in the last report and 6.6 percent in the same seven days during 2017.
Based on MBA’s data, interest rates on jumbo mortgages were 8 basis points lower than conforming rates. The spread was 10 BPS a week prior and also 8 BPS a year prior.
