Mortgage application activity declined for the week ending Feb. 8, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index fell by 3.7 percent on a seasonally adjusted basis from one week earlier; the unadjusted index was down by four percent. Both the seasonally adjusted and the unadjusted Purchase Index was down by six percent from one week earlier, while the latter was five percent lower than the same week one year ago. The Refinance Index dipped by a scant 0.1 percent from the previous week as the refinance share of mortgage activity increased to 43.2 percent of total applications from 41.6 percent the previous week.
All three federal loan programs recorded upward motion: The FHA share of total applications increased to 11 percent from 10.5 percent the week prior, while the VA share of total applications increased to 11 percent from 10 percent and the USDA share of total applications increased to 0.6 percent from 0.5 percent.
“Application activity fell last week–even with rates decreasing–as renewed uncertainty about the domestic and global economy likely held potential homebuyers off the market,” said Joel Kan, MBA’s Associate Vice President of Industry Surveys and Forecasts. “Despite the recent decline in applications, we still expect that the continued strength of the job market and lower rates will support more purchase activity in the coming months.”