Mortgage demand fell again last week, slipping 9.6 percent on a seasonally adjusted basis to the third lowest point since the end of June, according to the Mortgage Bankers Association.
The refinance index fell 9.0 percent, its fifth consecutive decline, while the seasonally adjusted purchase index dropped 10.5 percent.
The unadjusted purchase index was off 10.0 percent from one week earlier and 17.5 percent lower than the same week a year ago.
The decline in purchases was attributed to a 19.1 percent decline in government applications (FHA loans and VA loans).
“Applications for government mortgages dropped substantially last week, following the implementation of an increase in FHA mortgage insurance premiums,” said Mike Fratantoni, MBA’s Vice President of Research and Economics, in a statement.
“Applications for conventional mortgages also dropped last week, with refinance application volume continuing to drop following last week’s jump in rates.”
The refinance share of mortgage activity still managed to increase to 58.9 percent of applications from 58.7 percent, as mortgage rates saw some relief.
The popular 30-year fixed rate mortgage averaged 5.17 percent, down from 5.31 percent, while the 15-year slipped to 4.45 percent from 4.54 percent.
The one-year adjustable-rate mortgage decreased a single basis point to 7.02 percent, but the ARM-share of apps still climbed to 6.3 percent of applications from 6.2 percent.
The MBA’s weekly survey covers more than half of all retail, residential mortgage applications, but does not exclude rejected or duplicate apps, which have surely risen in the past couple years.
Similar Posts:
- Refinance Applications Highest in Over a Year
- FHA Loan Volume Falls as Claims Rise
- Mortgage Rates Fall as Economic Woes Persist
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- 30-Year Fixed Mortgage Rates Hold Steady at 4.50 Percent
Tags: Demand, Mortgage Demand
Posted April 12, 2010 by Oliver Blake under Financial News