U.S. mortgage applications down 3.5 percent

Nathan Andrada – Fourth Estate Cooperative Contributor

Washington, DC, United States (4E) – Mortgage applications fell 3.5 percent on a seasonally adjusted basis from last week’s revised figure, according to the Mortgage Bankers Association (MBA) report released Wednesday.

Application volume has declined in five of the last six weeks according to the MBA, which is a reversal from the start of 2014, when lower interest rates resulted to slight growth in applications.

The market composite fell 3 percent on an unadjusted basis from the previous week, the MBA said. The refinance index fell 8 percent, while the seasonally adjusted purchase index rose 3 percent.

The 30-year fixed-rate mortgages with conforming loans have an average rate of 4.56 percent, up from 4.5 percent in the earlier week. The 30-year fixed-rate mortgages with jumbo-loan balances saw their average rate rise to 4.45 percent from 4.39 percent.

Rates for Federal Housing Administration-backed 30-year fixed-rate mortgages gained to 4.16 percent from 4.13 percent in the previous week.

The 15-year fixed-rate mortgages saw their average rates climb to 3.62 percent from 3.52 percent in the earlier week. The 5/1 ARM average jumped to 3.22 percent from 3.09 percent. Both rates increased to their highest levels since January.

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