WASHINGTON–Mortgage applications dropped for a second consecutive week.
The Mortgage Bankers Association said its Market Composite Index, a measure of application activity, dipped 0.1% on a seasonally adjusted basis during the week ended April 28, and declined 1% unadjusted.
Refinancing did not maintain last week's flurry of activity. The Refinance Index was down 5% when compared to the week ended April 21 and refinancing applications retreated to a 41.6% share from 44% the previous week, according to the MBA.
The seasonally adjusted Purchase Index increased 4% from a week earlier and grew by 5% unadjusted. It was also 5% higher than during the same week in 2016, the MBA said.
The MBA data further revealed:
- The contract interest rate for jumbo 30-year FRM, those with balances greater than $424,100, increased to 4.18% from 4.15%. Points dipped to 0.23 from 0.27 and the effective rate increased.
- FHA-backed 30-year FRM had an average increase of three basis points in its contract rate, to 4.06%. Points fell to 0.24 from 0.34.
- The average rate for 15-year FRM was 3.51% with 0.32 point. The previous week the rate averaged 3.46%, with 0.50 point. The effective rate was unchanged.
- The 5/1 adjustable rate mortgage had an average contract interest rate that increased to 3.29% from 3.22%, with points decreasing to 0.14 from 0.18. The ARM share of activity decreased to 8.4% of total applications.