Mortgage applications dropped last week

Mortgage applications dropped last week on lower refinancing and purchases. 

The Mortgage Bankers Association said on Wednesday that applications decreased 4.5 percent for the week ended Feb. 17 from a week earlier, while refinancing was down 4.8 percent and purchases dropped 2.9 percent.  

The four-week moving average, a less volatile measure than the weekly figure, was down only slightly, 0.30 percent. The average was down 3.21 percent for purchases and 0.33 percent for refinancing. 

The refinance share of mortgage activity decreased to 80.1 percent of total applications from 81.1 percent the previous week.  

In January 2012, among refinance borrowers, 57.2 percent of applications were for fixed-rate 30-year loans, 24.4 percent for 15-year fixed loans and 5.5 percent for adjustable-rate mortgages.  

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.09 percent from 4.08.

The 30-year rate for mortgages with jumbo loan balances (greater than $417,500) increased to 4.32 percent from 4.3.

The average contract interest rate for 30-year fixed-rate mortgages backed by the Federal Housing Administration remained unchanged at 3.87 percent, while the 15-year rate increased to 3.38 percent from 3.33.