Mortgage as plummeted by 14.2% last week from the week before. The Mortgage Bankers Association (MBA) said this is the slowest pace in 25 years.

 It was also the seventh decline in the past eight weeks. Unadjusted, the index decreased 14% compared with the previous week. 

The Refinance Index decreased 18% from the previous week. This was also 86% lower than the same week one year ago.

The seasonally adjusted Purchase Index decreased 13% from a week earlier. The unadjusted Purchase Index also decreased 13% compared with the previous week. This is 37% lower than the same week last year.

The refinance share of mortgage activity decreased to 29% of total applications. This is down from 30.2% the previous week. The ARM share of activity increased to 11.8% of total applications. The FHA share of total applications increased to 13.2% from 12.5% the previous week. The VA share of applications remained unchanged at 10.7% from the week prior. USDA share of total applications remained unchanged at 0.6% from the previous week.

As Mortgage Applications Hit A 25-Year Low, The MBA Report Brings More Bad News 

Other key highlights of the report:

• The average contract interest rate for 30-year fixed-rate conforming mortgages increased to 6.75% from 6.52%. 
• The average contract interest rate for 30-year fixed-rate jumbo mortgages increased to 6.14 percent from 6.01 percent.
• The average contract interest rate for 30-year fixed-rate FHA mortgages increased to 6.60% from 6.17%.
• The average contract interest rate for 15-year fixed-rate mortgages increased to 5.96% from 5.7%.
• The average contract interest rate for 5/1 ARMs increased to 5.36% from 5.3%.

The MBA survey covers over 75%  of all U.S. retail residential mortgage applications. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, and thrifts. Base period and value for all indexes is March 16, 1990=100.

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