Mortgage application activity dropped nearly 10% in the week ending April 9 with both refinancing and purchase activity declining.
"Applications for government mortgages dropped substantially last week, following implementation of an increase in FHA mortgage insurance premiums," Mike Fratantoni, the Mortgage Bankers Association's vice president of research and economics said. "Applications for conventional mortgages also dropped last week, with refinance application volume continuing to drop following last week"s jump in rates."
Freddie Mac's survey reported a 13 basis point increase in 30-year fixed mortgage rates to 5.21% — its highest level since mid-August 2009.
According to the MBA's survey, the Refinance Index fell 9% to ~2048, which is the lowest level since the end of last year, while the Purchase Index was down 10.5% to ~218.
As a percent of total application activity, refinancing share ticked up 1/10th from the previous week to 58.9%. ARM share was also slightly higher to 6.3% from 6.2%.
At this time, FHLMC Gold and GNMA speeds in May (reported in June) are expected to be up to 10% slower on average as the day count declines to 20. Further slowing could happen if activity does not rebound.