In the week ending July 7, the volume of mortgage applications had acutely gone down 7.4 percent for the previous week. This data** is reported by the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
- The overall Market Composite Index on the seasonally adjusted basis has decreased by 7.4 percent. On the unadjusted basis, the said index also showed a drastic decrease, 26 percent lower compared to a week earlier. The Market Composite Index measures the volume of mortgage loan applications.
- The refinance share of mortgage activity fell down to 42.1 from 44.9 in the previous week
- The Refinance and Purchase Indexes also went down. The Refinance index hit the lowest on the year-to-date measure, decreasing 13 percent from the week prior. The Purchase Index fell 3 percent this week on the seasonally adjusted basis while on the unadjusted basis, it sloped down sharply by 22 percent from the previous week.
According to the weekly survey, the Federal Housing Administration’s share of mortgage activities increased by 0.2 percent, bringing it to 10.4 this week from last week’s 10.2. Also increased, the Veteran Affair’s share of mortgage applicants rose from 10.3 percent the survey a week prior to 11.5 percent in the latest one. The US Department of Agriculture, however, felt a decline in the share of applicants by 0.1 percent. From 0.8 in the previous week, it has gone down to 0.7 percent.
For loans backed by the FHA, the average contract interest rate for fixed-rate mortgages with a 3-year term increased to 4.12. For fixed-rate mortgages with a 15-year term, the average contract interest rate increased to 3.50 percent. For 5/1 adjustable-rate mortgage, the average contract interest rate decreased to 3.32 percent.
For conforming mortgage loans, the average contract interest rate increased to 4.22 percent for 30-year fixed-rate mortgages. For jumbo loans, there was a 0.09 percent increase in the average contract interest rate for 30-year fixed-rate mortgages. From 4.10 percent in the previous week, it has risen to 4.19 percent.
**the data on the said survey includes adjustments for the Fourth of July Holiday.