Mortgage applications decreased 5.8 percent from the prior week, according to the Mortgage Bankers Association’s weekly survey for the week ending December 14, 2018.
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The Refinance Index decreased 2 percent from the previous week.
“Despite mortgage rates falling across the board last week to their lowest levels in three months, mortgage applications also declined, as more potential borrowers likely stayed away because of ongoing financial market volatility and economic uncertainty,” Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Purchase applications decreased almost seven percent over the week and refinances decreased around two percent, led by a larger decline in government refinances compared to conventional refinances.”
The refinance share of mortgage activity increased to 43.5 percent of total applications, its highest level since February 2018, from 41.5 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 7.9 percent of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) decreased to its lowest level since September 2018, 4.94 percent, from 4.96 percent.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) decreased to its lowest level since September 2018, 4.74 percent, from 4.80 percent.