Mortgage loan applications decreased 2.5 percent on a seasonally adjusted basis from the previous week and 15-year fixed mortgage interest rates saw an uptick of 4 basis points, according to data evaluated using the Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of mortgage loan application volume.
MBA detailed its latest findings in its Weekly Mortgage Applications Survey for the week ending July 13. The survey showed some dramatic differences between adjusted and unadjusted rates, noting that the previous week’s results included an adjustment for the Fourth of July holiday.
On an unadjusted basis, the mortgage index increased 22 percent compared with the week prior and the refinance index rose 2 percent from the previous week. The seasonally adjusted purchase indexes signaled a 5 percent drop related to mortgage loans and a 19 percent increase for refinances compared with the previous week and represented a 1 percent increase year-over-year.
There was an increase in the share of refinances among all mortgage activity to 36.5 percent from 34.8 percent the previous week, but the adjustable-rate mortgage (ARM) share declined to 6.1 percent of total applications.
The Federal Housing Administration (FHA) share of total applications increased to 10.6 percent from 10 percent the week prior. The Department of Veterans Affairs’ share of total loan applications dropped to 10.2 percent from 11.3 percent the previous week, and the U.S. Department of Agriculture saw its loan share drop to 0.7 percent from 0.8 percent during that time.
For 15-year fixed-rate mortgages, the average contract interest rate jumped to 4.22 percent from 4.18 percent, with points decreasing to 0.42 from 0.46 (including the origination fee) for 80 percent LTV loans. The effective rate increased from the previous week.
Thirty-year fixed-rate mortgages saw a slight increase in the average contract interest rate for loans with conforming loan balances ($453,100 or less). The average rate ticked up to 4.77 percent from 4.76 percent, with points increasing to 0.46 from 0.43 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate also increased from the week before.
As far as jumbo loans (greater than $453,100), the average contract interest rate for 30-year fixed-rate mortgages declined to 4.66 percent from 4.68 percent, with points increasing to 0.3 from 0.24 (including the origination fee) for 80 percent LTV loans. Such loans also saw an effective rate increase from the previous week.
The average contract interest rate for FHA-backed 30-year fixed-rate mortgages dropped to 4.78 percent from 4.80 percent, with points decreasing to 0.69 from 0.75 (including the origination fee) for 80 percent LTV loans. The effective rate dropped from the week prior as well.
There was a reduction in the average contract interest rate for 5/1 ARMs to 4.12 percent from 4.13 percent, with points increasing to 0.39 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate stayed stagnant compared to the previous week.