MBA weekly survey: mortgage applications decline, interest rates increase

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey, mortgage applications dipped by 7.3 percent during the week ending September 16.

The Market Composite Index, a gauge of the volume of mortgage loan applications, also shows a decrease of 7.3 percent. Data from the survey as well as the index takes into account allowances for the Labor Day long weekend as well as seasonal adjustments to the data. Without adjustments, the index’s raw data showed a 15 percent increase last week.

The Refinance Index and Purchase Index both showed analogous trends as well, with the former falling by 8 percent from the previous week, and the latter seeing a drop of 7 percent. Both indexes showed a 15 percent increase on an unadjusted basis.

The past week saw increases to average contract interest rates for 30-year fixed-rate mortgages with jumbo loan balances (more than $417,000), 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less), 30-year fixed-rate mortgages backed by the FHA, and 15-year fixed-rate mortgages, with variance in each category ranging from two one-hundredths of a percentage point for 15-year fixed rate mortgages to five one-hundredths of a percentage point for 30-year fixed-rate mortgages with jumbo loan balances.