Applications Fall in MBA Weekly Survey
Mortgage applications fell sharply last week after two weeks of increases, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending June 23.
The Market Composite Index fell by 6.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 7 percent compared to the previous week.
The Refinance Index decreased 9 percent from the previous week. The refinance share of mortgage activity decreased to 45.6 percent of total applications from 46.6 percent the previous week.
The seasonally adjusted Purchase Index decreased by 4 percent from one week earlier. The unadjusted Purchase Index decreased by 5 percent compared to the previous week and was 8 percent higher than the same week one year ago.
The FHA share of total applications increased to 10.3 percent from 10.1 percent the week prior. The VA share of total applications decreased to 10.3 percent from 10.4 percent the week prior. The USDA share of total applications remained unchanged at 0.7 percent from the week prior.
“We’re seeing indications that entry level buyers continue to come into the market as jumbo borrowers looking at bigger homes step back,” said MBA Chief Economist Mike Fratantoni. “Last week, purchase applications saw a year over year growth of 8 percent while the average loan size for home purchase dropped to its lowest level since January. Mortgage rates have been essentially unchanged for the past four weeks, leaving little to attract those looking to refinance, especially at rates above 4 percent.”
MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged at 4.13 percent, with points decreasing to 0.32 from 0.34 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased to 4.09 percent from 4.08 percent, with points decreasing to 0.20 from 0.30 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by FHA decreased to 4.02 percent from 4.04 percent, with points increasing to 0.41 from 0.35 (including origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.39 percent from 3.40 percent, with points decreasing to 0.33 from 0.38 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 adjustable-rate mortgages increased to 3.31 percent from 3.26 percent, with points increasing to 0.25 from 0.22 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The ARM share of activity decreased to 7.0 percent of total applications.
The survey covers more than 75 percent of all U.S. retail and consumer direct residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.
Please note: MBA offices will be closed Monday, July 3 and Tuesday, July 4 for the Independence Day holiday and will reopen on Wednesday, July 5. MBA Weekly Applications Survey results for the week ending June 30 will be released on Thursday, July 6.
