Mortgage Application Activity Declines For Week
U.S. home mortgage loan applications declined for the first time in four weeks, weighed down by sagging demand for home purchase loans.
The Mortgage Bankers Association said that its seasonally adjusted index of mortgage application activity, which includes both mortgage refinance and purchase loans, for the week ending May 11 fell 0.8 percent.
The four-week mortgage application moving average, which is used to show perspective and even out the more volatile weekly figures, was up 1.7 percent, however.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.13 percent, up 0.03 percent from the previous week.
Mortgage rates were significantly lower than year-ago levels of 6.66 percent.
The MBA’s seasonally adjusted home purchase loan index, considered a timely gauge of U.S. home sales, fell 1.4 percent to 432.3 after hitting 438.3 the prior week, its highest level since January 12.
The index, however, was above its year-ago level of 426.7.
The seasonally adjusted index of mortgage refinancing applications rose by a modest amount, to 2,115.5 from 2,115.2 in the prior week. A year ago at this time, the index stood at 1,546.8.
Across the country, the refinance share of home loan applications increased to 42.1 percent from 41.8 percent the previous week.
Fixed 15-year home loan rates averaged 5.81 percent, a bit of a drop from 5.82 percent. Rates on one-year adjustable-rate mortgages (ARMs) fell to 5.61 percent from 5.71 percent.
The ARM share of activity decreased to 17.4 percent from 18 percent the previous week, as bad credit mortgage troubles continue to lessen the demand for adjustable-rate options.
The housing market, in general, is volatile and has sent mixed signals in recent weeks, with some pointing to weakening and others to stabilization in the hard-hit sector.
The MBA’s survey covers about 50 percent of all U.S. home loans. Respondents to the survey include mortgage banks, as well as commercial banks and thrifts.
SOURCE: Reuters