Mortgage applications erased all of the previous week’s gains, falling 7.3% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Sept. 16, 2016.
The prior week’s results included an adjustment for the Labor Day holiday and the 7.3% rise was one of the biggest increases in a string of lackluster results.
Broken up, the Refinance Index decreased 8% from the previous week to the lowest level since June 2016, while the seasonally adjusted Purchase Index decreased 7% from one week earlier.
The refinance share of mortgage activity inched up to 63.1% of total applications from 62.9% the previous week. The adjustable-rate mortgage share of activity decreased to 4.4% of total applications.
The Federal Housing Administration’s share of total applications increased to 10.2% from 9.6% the week prior, while the Veteran Affairs’ share of total applications decreased to 11.6% from 12% the week prior. The United States Department of Agriculture’s share of total applications stayed at 0.7%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased 3.70%, from 3.67%. This marks its highest level since June 2016.
Also rising, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 3.69% from 3.64%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.56% from 3.50%.
The average contract interest rate for 15-year fixed-rate mortgages increased to 2.99% from 2.97%, as the average contract interest rate for 5/1 ARMs increased to 2.96% from 2.87%.