Mortgage Applications Ease in MBA Weekly Survey
Mortgage applications fell from one week earlier, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending July 15.
The prior week’s results included an adjustment for the July 4th holiday.
The Market Composite Index decreased by 1.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased by 24 percent compared to the previous week.
The Refinance Index decreased by 1 percent from the previous week. The refinance share of mortgage activity increased to 64.2 percent of total applications from 64.0 percent the previous week.
The seasonally adjusted Purchase Index decreased by 2 percent from one week earlier. The unadjusted Purchase Index increased by 23 percent compared to the previous week and was 16 percent higher than the same week one year ago.
“The 10-year Treasury rose throughout the week ending July 15, averaging 12 basis points higher than the week before and leading mortgage rates 5 basis points higher,” said MBA Chief Economist Mike Fratantoni. “Recent swings in mortgage rates have been relatively muted compared to Treasury rates, although on net both remain below their levels from just prior to the Brexit vote.”
Fratantoni noted refinances fell slightly with rising rates last week, but the refinance share of applications was the highest since February, as purchase volume was slow to come back following the July 4 holiday.
The FHA share of total applications decreased to 9.9 percent from 10.0 percent the week prior. The VA share of total applications decreased to 11.2 percent from 12.1 percent the week prior. The USDA share of total applications decreased to 0.5 percent from 0.6 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.65 percent from 3.60 percent, with points unchanged at 0.36 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 3.66 percent from 3.61 percent, with points unchanged at 0.32 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by FHA remained unchanged at 3.53 percent, with points decreasing to 0.30 from 0.32 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 2.90 percent from 2.88 percent, with points decreasing to 0.31 from 0.34 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 adjustable-rate mortgages increased to 2.86 percent from 2.78 percent, with points increasing to 0.29 from 0.25 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The ARM share of activity decreased to 5.1 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.
