Mortgage applications enter fourth straight month of decline

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Refinance applications posted a 7% week-over-week decline, and purchase activity was down 4% from a week ago. Year over year, refi and purchase application volumes were down 86% and 38% over the year, respectively.

Of total applications, the refinance share of mortgage activity dropped seven basis points to 28.3% week over week. Meanwhile, the adjustable-rate mortgage share of activity increased to 12.8%, and the portion of FHA loans rose to 13.6%.

“With rates at these high levels, the ARM share rose to 12.8% of all applications, which was the highest share since March 2008. ARM loans continue to remain a viable option for borrowers who are still trying to find ways to reduce their monthly payments,” Kan said.