Weekly Mortgage Applications Decrease

Mortgage applications in the United States slipped last week, though remained significantly higher than a year ago, according to a report released Wednesday by the Mortgage Bankers Association.

The report found that applications were down 4.1 percent overall for the week ending February 5. The Refinance Index was down 4 percent for the week – and up 46 percent from a year earlier. Purchase applications increased 2 percent for the week and 17 percent for the year.

The refinance share of mortgage activity decreased to 70.2 percent of total applications from 71.4 percent the previous week. The adjustable-rate mortgage share of activity increased to 2.3 percent of total applications.

“Purchase applications cooled the first week of February, but homebuyers are still very active,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Purchase activity was 17 percent higher than last year, and the average purchase loan size continued to increase, reaching another survey high of $402,200, as the higher-priced segment of the market continues to perform well.”