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MBA: Mortgage Applications Fall 3 Percent as Rates Climb

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By    |   Wednesday, 30 January 2019 03:30 PM

Mortgage applications slid 3 percent last week as interest rates inched higher, according to the newest data from the Mortgage Bankers Association's weekly Mortgage Applications Survey.

The Market Composite Index, a measure of mortgage loan application volume, decreased 3.0 percent on a seasonally adjusted basis from one week earlier, the MBA said.

"Mortgage applications for purchase and refinances were lower over the past week, as rates nudged higher," said Joel Kan, MBA's Associate Vice President of Industry Surveys and Forecasts.

"After two weeks of decreases, the purchase index still remained roughly 6 percent above its long-run average, which is good news with the spring buying and selling season almost underway. Despite ongoing supply and affordability constraints, the healthy job market and underlying demographic fundamentals both point to gradual purchase growth in the coming months."

Added Kan, "Refinance activity had seen a small resurgence in the past few weeks, but there still remains only a small share of borrowers left to gain from rates at the current levels."

The refinance share of mortgage activity decreased to 42.0 percent of total applications from 44.5 percent the previous wee adjustable-rate mortgage (ARM) share of activity decreased to 7.9 percent of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 4.76 percent from 4.75 percent.

The average contract interest rate for 15-year fixed-rate mortgages increased to 4.16 percent from 4.12 percent, with points decreasing to 0.46 from 0.53.

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MBA: Mortgage Applications Fall 3 Percent as Rates Climb
mortgage, applications, rates, home, loans
Wednesday, 30 January 2019 03:30 PM
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