WASHINGTON (5/14/15)--Mortgage applications fell for the third consecutive week last week, as the composite index for the Mortgage Bankers Association’s weekly mortgage application survey dropped by 3.5% (Economy.com May 13).
Over the past three weeks, the index has fallen by a total of 10.4%, largely driven by evaporating refinance applications, according to Moody’s.
In fact, for the week ending May 8, refinance applications accounted for 50.9% of all applications, the lowest share since May 2014.
“A selloff in treasuries is forcing yields higher, which is causing mortgage rates to perk up a bit,” said Michael McGrane, Moody’s analyst (Economy.com). “This is dissuading individuals from refinancing. Additionally, most homeowners who intended to do so have likely already locked in low rates, so it is unlikely that refinance activity will pick up considerably this year.”
The four-week moving average for refinance activity has fallen 9.3%, while purchase applications have climbed 7.8% over that stretch. Annually, purchase applications have climbed 14.8% higher.
The contract rate for 30-year-fixed-rate mortgages rose 7 basis points during the week to 4%, which is still 39 basis points below where it was a year ago.
Further, the 30-year fixed-rate jumbo mortgage rate climbed 8 basis points higher to 3.99%, while the five-year adjustable-rate mortgage rate increased 13 basis points to 3%.