by Francis Monfort
Mortgage applications saw a 6.3% increase on a seasonally adjusted basis from one week earlier, according to a Mortgage Bankers Association survey for the week ending July 14.
The results for the prior week took into account an adjustment for the Fourth of July holiday. On an unadjusted basis, the Market Composite Index, which measures mortgage loan application volume, increased 33% from the prior week. The Refinance Index posted a 13% increase. On a seasonally adjusted basis, the Purchase Index grew 1%, while the Index grew 27% on an unadjusted basis compared to the week before.
Of all mortgage application activity, refinances made up 44.7% during the week, up from 42.1% in the previous week. The percentage of adjustable-rate mortgage activity of all applications was unchanged week-over-week at 6.7%.
Of total applications, the share of FHA
activity grew to 10.7% from 10.4%, while VA
share fell to 10.7% from 11.5%. The share of USDA in total applications was steady at 0.7% compared to last week.
For 30-year fixed-rate mortgages with conforming loan balances, the average contract interest rate for remained unchanged at 4.22%, with points falling to 0.31 from 0.40 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
On average, contract interest rates fell to 4.18% from 4.19% for 30-year fixed-rate mortgages with jumbo loan balances. Points were steady at 0.30 (including the origination fee) for 80% LTV loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell to 4.10% from 4.12%, with points decreasing to 0.30 from 0.40 (including the origination fee) for 80% LTV loans.
For 15-year fixed-rate mortgages, the average contract interest rate fell to 3.48% from 3.50%, with points decreasing to 0.39 from 0.45 (including the origination fee) for 80% LTV loans. On average, contract interest rates were unchanged for 5/1 ARMs at 3.32%, with points decreasing to 0.21 from 0.31 (including the origination fee) for 80% LTV loans.
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