Mortgage Applications Fall Further Despite Decline in Rates

Source: Mortgage Bankers Association

Mortgage applications declined in the past week even as rates were slashed further, as the data from the Mortgage Bankers Association (MBA) showed. XHB is down 0.24%, while ITB is down 0.25%.

• The volume of mortgage loan applications slipped by 1.2% from the previous week on a seasonally adjusted basis and by 2% on an unadjusted basis.
• The Refinance Index fell by 4% and was 75% lower than the same week in the past year.
• The Purchase Index was flat from the previous week on a seasonally adjusted basis and 1% lower on an adjusted basis.
• MBA Associate Vice President of Economic and Industry Forecasting Joel Kan said mortgage rates continue to impact purchasing, currently at record lows.
• Prospective buyers are holding off any purchases due to higher rates and prices and low supplies.
• The average rate for 30-year fixed-rate mortgages for conforming loan balances fell to 5.46% from 5.49%.
• The average rate for 30-year fixed-rate mortgages with jumbo loan balances fell to 5.02% from 5.03%.
• The average rate for the 30-year fixed-rate mortgages backed by the FHA and for 15-year fixed-rate mortgages also declined.