Despite an increase in applications to refinance home loans, overall mortgage applications softened due to a slowdown in home purchase financing.
A gauge for the weekly volume of applications for residential loans, the Market Composite Index, was down 2 percent in the week ended May 13.
That was based on a seasonally adjusted basis. Without seasonal adjustments, the index still retreated 2 percent compared to the previous week.
The index is determined based on
he Mortgage Bankers Association’s Weekly Mortgage Applications Survey. The trade group says the survey covers more than 75 percent of all U.S. retail residential mortgage applications.
Refinance applications were up, however, a seasonally adjusted 1 percent from the week ended May 6.
Increasing refinance activity reflected a widening refinance share, to 54.7 percent in the latest report from 52.8 percent one week prior and 52 percent one year prior.
Purchase-money applications tumbled 6 percent from the last report to the lowest level since February. Without seasonal adjustments, purchase activity was still down 6 percent on a week-over-week basis but up 12 percent on a year-over-year basis.
Applications for mortgages insured by the Federal Housing Administration made up 12.6 percent of total applications. FHA share slipped from 13.0 percent in the prior week.
Applications for loans guaranteed by the Department of Veterans Affairs
represented 12.2 percent of total activity. VA share widened from 11.7 percent seven days earlier.
Adjustable-rate mortgage applications accounted for 5.5 percent of total activity, thinner than 5.7 percent in the last report
and 6.4 percent in the year-earlier report.
Jumbo interest rates were 8 basis points less than conforming rates. The jumbo-conforming spread was unchanged from a week earlier.
