Mortgage applications dropped during the week ending Feb. 26 as refinance activity fell to its lowest level since January, according to data from the Mortgage Bankers Association.
The MBA's market composite index fell by 4.8% on a seasonally adjusted basis
The data also noted the adjustment during the previous week for the President's Day holiday. On an unadjusted basis, purchase apps were up 14% and the market composite index was up 7% from the week before.
Refinances, as a share of overall mortgage activity, dipped to 58.6% from 61% a week earlier, reaching the lowest level recorded since January. The adjustable-rate and VA shares also declined, falling to 5.6% and 12.1% of total applications, respectively.
The FHA and USDA shares of applications remained unchanged week-to-week. The FHA share of total applications was 12%, while the USDA share held steady at 0.7%.
Mortgage rates generally decreased during the week.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) slumped two basis points to 3.83% from the week prior. Similarly, the average rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) dropped five basis points to 3.75%.
The average contract interest rate for 5/1 ARMs likewise decreased five basis points to 3.02%. The average rate for 30-year fixed-rate mortgages backed by the FHA also declined by five basis points to 3.67% from 3.72%.
Bucking the week's trend, the average contract interest rate for 15-year fixed-rate mortgages increased by a single basis point to 3.13%.
