The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning. It noted a week-over-week decrease of 4.6% in the group’s seasonally adjusted composite index for the week ending May 1, following a decrease of 2.3% for the week ending April 24. Mortgage loan rates increased on four popular loan types and decreased slightly on adjustable rate mortgage loans.
On an unadjusted basis, the composite index decreased by 4% week-over-week. The seasonally adjusted purchase index rose 1% compared to the week ended April 24. The unadjusted purchase index increased by 2% for the week and is now 12% higher year-over-year.
The MBA’s refinance index decreased 8% week-over-week, and the percentage of all new applications that were seeking refinancing dropped from 55% to 53%.
The decline in refinancing activity continues, and even though mortgage rates remain below 4% on all popular loan types, an increase in refinancing is unlikely…
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