It is beginning to look like a dismal spring for the mortgage market, as home loan applications dropped for the fifth consecutive week, according to data from the Mortgage Bankers Association
covering the week ending May 4.
The Market Composite Index dipped by 0.4 percent on a seasonally adjusted basis from one week earlier, while the unadjusted index was unchanged. The seasonally adjusted Purchase Index was down by 0.2 percent, although the unadjusted index saw a 0.4 percent uptick over the previous week and was three percent higher than the same week one year ago. The Refinance Index was down by one percent from the previous week to its lowest level since October 2008, while the refinance share of mortgage activity decreased to 36.3 percent of total applications, its lowest level since September 2008, from 36.5 percent the previous week.
Among the federal programs, the FHA share of total applications decreased to 10.1 percent from 10.3 percent the week prior, the VA share of total applications increased to 10.4 percent from 10.2 percent and the USDA share of total applications decreased to 0.7 percent from 0.8 percent.
"Mortgage rates dipped slightly last week driven mainly by concerns about global growth," said MBA Associate Vice President of Economic and Industry Forecasting Joel Kan. "Application activity was little changed last week; both purchase and refinance applications declined slightly, even as rates took a pause in their upward trend. The 30-year fixed rate decreased for only the third time in 2018, decreasing two basis points to 4.78 percent. The refinance index continued to slip and was at its lowest since 2008, as was the refinance share of applications."