Mortgage Applications Down Again

Mortgage application activity dropped for the third consecutive week, according to new Mortgage Bankers Association (MBA) data covering the week ending April 20.

 

The Market Composite Index was down by a scant 0.2 percent on a seasonally adjusted basis from one week earlier, while the unadjusted index was up by one percent. The seasonally adjusted Purchase Index was unchanged from one week earlier, while the unadjusted Purchase Index was one percent higher compared to the previous week and was 11 percent above the level set during the same week one year ago. The Refinance Index dipped by 0.3 percent and the refinance share of mortgage activity decreased to 37.2 percent of total applications, the lowest level since September 2008, from 37.6 percent the previous week.

 

Among the federal programs, the FHA share of total applications decreased to 10.2 percent from 10.6 percent the week prior and the VA share of total applications decreased to 10.1 percent from 10.4 percent, while the USDA share of total applications remained unchanged at 0.8 percent.

 

"Treasury rates increased significantly last week, partly driven by the market's reaction to more hawkish comments from key Fed officials and positive economic news on strong retail sales and declining jobless claims," said Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. "The conventional purchase index increased to its highest level since January 2009. Applications for government purchase applications, loans more likely to be used by first-time buyers, declined for the week."

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