Mortgage applications decreased 2.4% from one week earlier even though interest rates for conforming loans are at their lowest point in 18 months, according to data from the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ending June 10 found that the seasonally adjusted purchase index decreased 5% from one week earlier.
The refinance index decreased 1%
The adjustable-rate mortgage share of activity increased to 5.3% of total applications, while the FHA share of total applications decreased to 11.8% from 13%.
The VA share slid to 11.1% from 11.5% the week prior and the USDA share decreased one basis point to 0.6%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since January 2015, 3.79%, from 3.83%.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to its lowest level since May 2016, 3.75%, from 3.81%.
The average for the 30-year backed by the FHA decreased to its lowest level since May 2013, 3.61%, from 3.71%, while for 15-year fixed-rate mortgages, the average decreased to its lowest level since May 2016, 3.06%, from 3.11%.
The average rate for 5/1 ARMs decreased to its lowest level since May 2015, 2.87%, from 2.96%.
