NEW YORK ( TheStreet) -- Mortgage applications are plunging as mortgage interest rates continue to climb.
According to the latest survey by the Mortgage Bankers Association, mortgage applications decreased 13.5% in the week ended Sept.6 from a week earlier, on a seasonally adjusted basis.
The Market Composite Index declined 23% on an unadjusted basis. As has been the case since rates began their rise in May, refinance applications led the decline, plunging 20%. Refinance applications have plummeted 71% from their peak level in May and are at the lowest level since June 2009.
The share of refinances to total applications dropped to 57% from 61% in the previous week. Refinances as a share of total applications were at the lowest level since April 2010.The MBA's seasonally adjusted Purchase Index was down 3% from a week earlier. On an unadjusted basis, purchase applications declined 14%, though they were still 7% higher than a year earlier. The average contract interest rate for 30-year fixed-rate mortgage loans with conforming loan balances ($417,000 or less) increased to 4.80% from 4.73% during the week, with points increasing to 0.46 from 0.33 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The average contract interest rate for 30-year fixed-rate mortgage loans with jumbo balances (greater than $417,000) increased to 4.84% from 4.71%. The average contract interest rate for 30-year fixed-rate mortgage loans backed by the Federal Housing Administration (FHA) increased to 4.56% from 4.48%. Trulia economist Jed Kolko