Decline in Mortgage Applications

By Liz Clinger Updated on 5/30/2012

For the week ending May 25, mortgage applications declined 1.3% according to an industry trade group.

A market composite index released by the MBA that is a measure of loan application volume shows the refinance and purchase activity declined from the previous week. Refinancing declined 1.5% and seasonally adjusted purchase index declined 1.8%.
The seasonally-adjusted market four-week moving average raised 3.23%, is up 4.36% for the refinance index but is down 0.67% for seasonally adjusted purchase index.
Refinance activity for mortgage still hit the same 76.6% of all mortgage applications from the week prior.

30-year fixed rate mortgages with conforming loan balances average contract interest rate lowered 0.02% from the week before, reaching 3.91%, another record breaking low. 30-year fixed rate mortgages with jumbo loan balances also lowered 0.02% reaching 4.23%.

FHA Backed 30-year fixed rate mortgage rates average declined 0.03% from 3.73% to 3.70%. 15-year fixed rate mortgage rates average declined 0.03% from 3.26% to 3.23%.

5/1 ARMs average contract rate declined as well, down to 2.77% from 2.83% the week prior.