Mortgage applications decreased 1.3% from one week earlier while average contract interest rates hit record lows, according to data from the Mortgage Bankers Association's (MBA) weekly mortgage applications survey for the week ending May 25. The week's results do not include an adjustment for early closings on Friday before the Memorial Day holiday.
The MBA's market composite index decreased 1.3% on a seasonally adjusted basis from one week earlier; on an unadjusted basis, the index decreased 1.6% compared with the previous week.Â
The MBA also reports new record lows for the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances (3.91%), the average contract interest rate for 30-year fixed-rate mortgages backed by the Federal Housing Administration (3.7%), the average contract interest rate for 15-year fixed-rate mortgages (3.23%) and the average contract interest rate for 5/1 adjustable-rate mortgages (2.77%).
The refinance index decreased 1.5% from the previous week. The refinance share of mortgage activity remained unchanged at 76.6% of total applications from the previous week.Â
The seasonally adjusted purchase index decreased 0.6% from one week earlier. The unadjusted purchase index decreased 1.8% compared with the previous week and was 3.9% lower than the same week one year ago.