Mortgage Refinance Applications Fall for 6th Straight Week

Higher interest rates and a drop in government-backed loan restructuring fueled the sixth consecutive week of fewer refinancing applications, according to the Mortgage Bankers Association’s survey for last week.
The group’s Refinance Index has fallen to its lowest level since December. It is 24.2 percent lower than its 2012 peak last month.
The refinance share of mortgage activity has decreased to 71.9 percent of total applications, the lowest level since July 2011, from 73.4 percent the previous week.
A 12 percent drop in government refinance activity was largely responsible for the decline in the Refinance Index. Conventional refinance applications fell by less, decreasing 3.4 percent from the previous week.
The MBA’s Market Composite Index, a measure of overall mortgage loan application volume, decreased 2.7 percent on a seasonally adjusted basis from one week earlier.
The four-week moving average for the seasonally adjusted Market Index is down 3.40 percent.
The average contract interest rate for 30-year fixed-rate mortgages, with conforming loan balances ($417,500 or less) increased to 4.23 percent, the highest rate since November 2011, from 4.19 percent. Points decreased to 0.45 from 0.47 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the Federal Housing Administration (FHA) increased to 3.96 percent from 3.93 percent, with points increasing to 0.52 from 0.48 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.50 percent, the highest rate since December 2011, from 3.47 percent, with points increasing to 0.42 from 0.40 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for 5/1 ARMs increased to 3.00 percent, the highest since rate December 2011, from 2.90 percent, with points decreasing to 0.42 from 0.44 (including the origination fee) for 80 percent LTV loans.

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