As fewer prospective borrowers completed a new mortgage application this past week, the share of consumers applying for refinances and adjustable-rate mortgages receded.
The volume of new mortgage applications decelerated last week, with the Market Composite Index for the week ended Aug. 24 retreating a seasonally adjusted nearly 2 percent from the prior week.
Without any seasonal adjustments, the index — a measure of retail residential loan application volume — moved lower by 3 percent from the seven days that concluded on Aug. 17.
The Mortgage Bankers Association reported the data based on its Weekly Mortgage Applications Survey, which it says covers more than three-quarters of all applications.
A 3 percent week-over-week decline was recorded for refinance applications — giving refinances a 38.7 percent share. Refinance share was no different than a week earlier and more narrow than 49.4 percent a year earlier.
Applications for purchase-money transactions
declined a seasonally adjusted 1 percent. Foregoing seasonal factors, purchase business slowed 3 percent but was up 3 percent from the week ended Aug. 25, 2017.
FHA share was unchanged from last week’s report at 10.2 percent
but widened from 9.7 percent in the same seven days during 2017.
Similarly, VA share remained at 10.5 percent but widened from a 10th this week a year ago.
MBA’s data indicated that 6.3 percent of all applications were for ARMs during the latest week. ARM share was 6.5 percent in the last report and 6.9 percent in the year-previous report.
Based on the trade group’s data, interest rates on jumbo mortgages were 10 basis points lower than conforming rates. The spread thinned from 13 BPS a week earlier and 11 BPS a year earlier.
