Total mortgage volume fell to its lowest point in 15 months, with declines seen in both weekly purchase and refinance activity, according to the latest data from the Mortgage Bankers Association.
The MBA’s Market Composite Index decreased a seasonally adjusted 4% — or 5% unadjusted — from the previous week for the period ending May 28, falling to its lowest level since February 2020. The composite index tracks mortgage application activity through the MBA’s regular survey of lenders. Total seasonally adjusted loan volume came in 7.2% lower compared to the same week last year.
For the
The Purchase Index was down a seasonally adjusted 3% from the prior week as well. On an unadjusted basis, the decrease clocked in at 5% and was 2% lower compared to the same week last year.
“Tight housing inventory, obstacles to a faster rate of new construction, and rapidly rising home prices continue to hold back purchase activity,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting, in a press statement.
Average mortgage size decreases
For the first time in over a month, though,
Adjustable-rate mortgage applications accounted for a 3.7% share of total volume, compared to 4% a week earlier. The refinance share of loan activity came at 61.3% for the week, down one basis point from 61.4% the previous week.
Among government-sponsored programs, mortgages backed by the Federal Housing Authority comprised 9.6% of all applications, up from 9.1% the prior week, while the share of Veterans Affairs sponsored loans decreased to 10.9% compared to 11.2% a week earlier. The share of loans made through U.S. Department of Agriculture programs remained unchanged at 0.4% for the week.
30-year conforming fixed-rate mortgage drops; jumbo rate rises
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $548,250 or less fell to 3.17% from 3.18% week over week. But the average rate of 30-year jumbo loans with balances greater than $548,250 climbed to 3.34%, up from 3.3% the prior week.
The average contract interest rate of FHA-backed 30-year mortgages dropped to 3.16%, compared to 3.2% one week earlier.
The contract interest rate of 15-year fixed-rate mortgages averaged 2.56%, climbing from the previous week’s 2.53%, while the 5/1 adjustable-rate mortgage averaged 2.54%, decreasing from 2.81% a week earlier.