The last time that refinances accounted for this small of a share of mortgage applications, America was in the midst of a financial meltdown. Overall applications fell.
A more than 3 percent seasonally adjusted retreat from the previous seven-day period was recorded for the Market Composite Index during the week ended March 30.
Even without considering seasonal factors, the volume of retail-generated residential loan applications was still down 3 percent from the week ended March 23.
The index is a measure of application volume from the
Mortgage Bankers Association’s Weekly Mortgage Applications Survey. It reportedly covers more than three-quarters of all applications.
A 5 percent tumble was reported for refinance applications, which made up 38.5 percent of all applications — the thinnest share since
it was 36.3 percent in the week ended Sept. 5, 2008. Refinance share was 39.4 percent the previous week and 42.6 percent the same week a year ago.
Purchase-money applications eased 2 percent from the last report on a seasonally adjusted basis. The unadjusted Purchase Index was down 2 percent from a week earlier but 5 percent better than a year earlier.
Of all applications completed, 10.1 percent were for mortgages insured by the Federal Housing Administration. That was wider than 9.9 percent the prior week but less than 11.1 percent a year prior.
Applications for loans guaranteed by the Department of Veterans Affairs accounted for 10.3 percent, the same as the previous week. VA share was reduced, though, from 11.1 percent twelve months previous.
Adjustable-rate mortgage applications represented 6.5 percent of all activity, more narrow than 7.0 percent the preceding week and 8.5 percent in the week ended March 31, 2017.
The trade group reported jumbo interest rates that were 13 basis points lower than conforming rates. The spread widened from 9 BPS
in last week’s report and 10 BPS in the report from the same week in 2017.
