Mortgage activity slipped for the second week in a row thanks to another slow down in once-popular refinance activity, the MBA said today.
The home loan application index fell 9.6 percent on a seasonally adjusted basis (8.1 percent unadjusted) for the week ending May 8, but was still up 28.4 percent compared with the same week a year ago.
Refinance demand slid 11.2 percent, while purchase activity increased a meager 0.5 percent, its second successive increase.
The refinance share of mortgage activity fell to 71.9 percent of total applications from 74.4 percent the previous week, despite a slight improvement in interest rates.
The always-hot 30-year fixed mortgage decreased to 4.76 percent from 4.79 percent, while the 15-year fixed averaged 4.50 percent, down from 4.57 percent.
The one-year adjustable-rate mortgage increased to 6.41 percent from 6.36 percent, which explains why the ARM-share of total apps was a dismal 2.3 percent.
The MBA’s weekly survey, conducted since 1990, covers roughly half of all retail residential loan applications, but does not exclude multiple or declined apps.
And because most loans are originated via the retail channel these days, the numbers aren’t really as strong as they look.
Hopefully the banks didn’t overdo all that hiring…
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