Mortgage applications dropped 4.2% from two weeks prior, according to the latest report by the Mortgage Bankers Association.
Mortgage rates continued 2020’s trend at historically low figures, with the 30-year fixed rate at 2.86% and the 15-year fixed rate at a survey low of 2.40%, according to Joel Kan, MBA’s associate vice president of economic and industry Forecasting.
But mortgage applications dropped during the week ending Jan. 1 – an annual occurrence during the holiday season. That should change as the year progresses, Kan said.
The unadjusted index decreased 33% from two weeks ago, and the holiday adjusted refinance index decreased 6%.
The seasonally adjusted purchase index also decreased 0.8% from two weeks ago.
The FHA share of total mortgage applications remained unchanged from 10.1% the week prior. The VA share of total mortgage applications increased to 13.6% from 12.1% the week prior.
Here is a more detailed breakdown of this week’s mortgage application data:
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) increased to 2.86% from 2.9%
- The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $510,400) decreased to 3.08% from 3.09%
- The average contract interest rate for 30-year fixed-rate mortgages fell to 2.90% from 2.95%
- The average contract interest rate for 15-year fixed-rate mortgages decreased to a survey-low 2.40% from 2.42%
- The average contract interest rate for 5/1 ARMs increased to 2.63% from 2.57%
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