US Mortgage Applications Slip in the Week Ending February 6

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, February 6, the Market Composite Index—a measure of mortgage loan application volume—decreased 0.3% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 2.0%.

The Refinance Index increased 1.0% from the previous week and was 111.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 2.0% from one week earlier. On an unadjusted basis, the Purchase Index increased 4.0% compared with the prior week and was 4.0% higher than the same week one year ago.

In remarks accompanying the release, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage applications were relatively flat over the week, but it was a mixed bag for the different loan types. The 30-year fixed rate was unchanged at 6.21%, and conventional applications declined for both purchases and refinances as borrowers held out for another drop in rates or shifted to other loan types. FHA purchase and refinance applications increased, helped partially by the FHA rate declining and remaining 20 basis points lower than the conforming 30-year fixed rate.

Borrowers are increasingly utilizing FHA loans as affordability challenges remain, despite recent improvements. Similarly, the ARM share increased to a seven-week high with ARM rates almost a percentage point lower than fixed rates.”