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“Bothrnpurchase and refinance application activity fell last week, and the marketrncomposite index is at its lowest level since December 2000,” said MikernFratantoni, MBA’s Chief Economist. “Purchase applications decreased 4 percentrnover the week, and were 21 percent lower than a year ago. Refinance activityrnalso continued to slide despite a 30-year fixed rate that was unchanged fromrnthe previous week. The refinance index dropped 7 percent to the lowest levelrnsince 2008, continuing the declining trend that we have seen since May 2013.” </p

Contractrninterest rates for fixed rate mortgages were lower or unchanged from thernprevious week while effective rates all decreased.  Interest rates for 5/1 adjustable raternmortgages did increase during the week with the average contract rate rising 10rnbasis points to 3.26 percent.  Pointsrndecreased to 0.35 from 0.36 and the effective rate decreased from the previousrnweek.  Approximately 8 percent ofrnmortgage applications were for the various adjustable rate products,rnessentially unchanged from the previous week. </p

Thernaverage contract interest rate for 30-year fixed-rate mortgages (FRM) withrnconforming loan balances of $417,000 or less was unchanged at 4.49 percent,rnwith points decreasing to 0.38 from 0.50. rnThe average contract interest rate for jumbo 30-year fixed-raternmortgages with balances greater than $417,000 decreased to 4.37 percent fromrn4.41 percent, with points dropping to 0.14 from 0.34. </p

Thernaverage contract interest rate for 30-year fixed-rate mortgages backed by thernFHA decreased to 4.17 percent from 4.20 percent with points decreasing to 0.10rnfrom 0.41 and the rate for 15-year fixed-rate mortgages decreased to 3.53rnpercent from 3.55 percent.  Points forrnthe 15-year decreased to 0.31 from 0.33. </p

MBA’s datarnis derived from its Weekly Mortgage Applications Survey which it has conductedrnsince 1990 and which covers over 75 percent of all U.S. retail residentialrnmortgage applications.  Surveyrnrespondents include mortgage bankers, commercial banks and thrifts.  Interest rate information is based on loansrnwith an 80 percent loan-to-value ratio and points include the originationrnfee.  Base period and value for allrnindexes is March 16, 1990=100.

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