Mortgage applications fall 7.3 percent in a week

The number of mortgage applications for the week ending May 10 dropped 7.3 percent from a week earlier, the Mortgage Bankers Association announced today. The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances has been falling for seven weeks in a row. But for that week, it increased to 3.67 percent from 3.59 percent, at $417,500 or less. Points increased to 0.41 from 0.33, including the origination fee, for 80 percent loan-to-value ratio loans. This rate is at its highest level since the week ending April 12. The effective rate increased from last week, the association said.

On a seasonally unadjusted basis, the Market Composite Index or the mortgage loan application volume decreased 7 percent over a week. The Refinance Index fell 8 percent in that span of time as well.

Sign Up for the undefined Newsletter

The refinance share of mortgage activity held steady, with 76 percent of total applications from the previous week. The adjustable-rate mortgage share of activity remained constant at 4 percent of total applications, the report said. – Mark Maurer