Mortgage applications reported a very quiet week, echoing other industry reports, the Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey for the week ending Sept. 23 stated.
According to the survey, mortgage applications slipped 0.7% from one week earlier.
While the last report posted a 7.3% decline in mortgage applications, it was one of one of the biggest movements in applications in a string of lackluster results.
The Refinance Index decreased 2% from the previous week, as the seasonally adjusted Purchase Index increased 1% from one week earlier.
As a whole, the refinance share of mortgage activity dipped to 62.7% of total applications, down from 63.1% the previous week. The adjustable-rate mortgage share of activity remained unchanged at 4.4% of total applications.
The Federal Housing Administration’s share of total applications remained frozen at 10.2% from the week prior. The Veteran Affairs’ share of total applications barely increased to 11.9% from 11.6% the week prior, as the United States Department of Agriculture’s share of total applications decreased to 0.6% from 0.7% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.66%, slightly down from 3.70%.
Similarly, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.64% from 3.69%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.52% from 3.56%.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.95% from 2.99%, while the average contract interest rate for 5/1 ARMs decreased to 2.92% from 2.96%.
Meanwhile, the latest appraisal volume report posted similar lackluster results, with volume falling a modest 0.2% for the week of Sept. 18.
Appraisal volume is an indicator of market strength and holds some advantages over weekly mortgage applications.
For example, fallout is less for appraisals since they are ordered later in the mortgage process, after creditworthiness is determined, and there are few multiple-orders, by the time an appraisal is conducted.