It has been nearly a decade since the weekly volume of applications to refinance an existing mortgage was this low. Overall applications slowed, government share reached a four-week high and the jumbo-conforming spread thinned.
A seasonally adjusted 2.7 percent decline from one week earlier was recorded for the Market Composite Index for the seven-day period that ended on May 11.
The seasonally adjusted index, which is
a measure of retail residential loan application volume, ,has retreated each week since the week ended April 13.
However, when no adjustments are made for seasonal factors, the index was still down 3 percent from the week ended May 4.
The Mortgage Bankers Association reported the index based on its
Weekly Mortgage Applications Survey, which reportedly covers more than three-quarters of all applications.
Refinance applications fell 4 percent to the slowest volume since August 2008. At the same time, refinance share was 35.9 percent — the thinnest share since it was 34 percent in the week ended Aug. 29, 2008. The share was 36.3 percent in last week’s report and 41.1 percent in the same report a year ago.
Applications for loans to finance a home purchase declined a seasonally adjusted 2 percent. Foregoing seasonal adjustments, purchase-money activity was still down 3 percent but was 4 percent higher than in the week ended May 12, 2017.
Of all applications completed, 10.3 percent were for mortgages insured by the Federal Housing Administration. That was wider than the 10.1 percent FHA share the prior week but thinner than 10.6 percent a year prior.
At 10.3 percent, the share of applications for loans guaranteed by the Department of Veterans Affairs was more narrow than 10.4 percent in the preceding seven-day period and 10.7 percent in the same seven days last year.
Including USDA applications, government share was 21.4 percent — the widest it’s been since the week ended April 13.
Adjustable-rate mortgage applications accounted for 6.5 percent of total activity, the same as in the last report. ARM share was thinner, though, than 8.1 percent one year previous.
Jumbo interest rates were 4 basis points lower than conforming rates. The spread was slashed from 13 BPS a week earlier. A year earlier, there was no difference between jumbo and conforming rates.
