Refinancing activity plummeted to an 18-year low, according to Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Aug. 3.
The Market Composite Index decreased by three percent on both a seasonally adjusted and unadjusted basis from one week earlier—the seasonally adjusted index reached its lowest level since January 2016. Both the seasonally adjusted and unadjusted Purchase Index decreased two percent from one week earlier, with the latter being two percent lower than the same week one year ago.
But the dramatic numbers were on the refi side of the business: The refinance share of mortgage activity decreased to 36.6 percent of total applications from 37.1 percent the previous week and the Refinance Index fell by five percent from the previous week to plumb its lowest level since December 2000.
Among the federal programs, the FHA share of total applications remained unchanged at 10.4 percent from the week prior while the VA share of total applications increased to 10.6 percent from 10.5 percent and the USDA share of total applications remained unchanged at 0.8 percent.