US mortgage applications declined for a 4th week running even as some home borrowing costs fell to their lowest levels in more than 11 months, the Mortgage Bankers Association said Wednesday.

The Washington-based industry group’s seasonally-adjusted index on borrower requests to lenders for a loan to buy a home and to refinance one decreased 3.7% to 364.8% in the week ended 8 February, the weakest reading in a month.

Application activity fell last week – even with rates decreasing.The 30-year fixed-rate mortgage dropped to its lowest level since last March, and was 52 basis points lower than its recent high last November. Government refinances provided a bright spark, picking up over 10%, as both FHA and VA refinancing activity saw increases over the week.

The refinance share of mortgage activity increased to 43.2% of total applications from 41.6% the prior week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.5% of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.65% from 4.69%, with points decreasing to 0.43 from 0.45 for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.04% from 4.11%, with points increasing to 0.48 from 0.47 for 80% LTV loans. The effective rate decreased from last week.

Stay tuned…

  adjustable, applications, ARM, decreased, home, mortgage, rates

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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