After plunging down a week prior, mortgage applications take a rebound. On the week ending July 14, applications rose by 6.3 percent from the previous week. The Refinance and Purchase Indexes both increased in the latest weekly survey by the Mortgage Bankers’ Association.
- The overall Market Composite Index has risen 6.3 percent on the seasonally adjusted basis. For the unadjusted basis, it also increased 33 percent from a week prior. This index measures the volume of mortgage loan applications.
- For the seasonally adjusted basis, the Purchase Index increased 1 percent, while on the unadjusted basis, it increased 27 percent. For the Refinance Index, it increased by 13 percent seen after a week.
- The ARM share of activity remained unchanged at 6.7 percent. The share of the mortgage activity that accounts for refinance also increased. It has climbed 44.7 percent from the prior week’s 42.1 percent. For the Federal Housing Administration shares increased by 0.3 percent. The Veteran Affairs’ shares had gone down by 0.8 percent. The application shares of the USDA remained unchanged at 0.7 week-over-week.
The respondents of the Mortgage Applications Weekly Survey include mortgage and commercial banks and thrifts. It represents over 75 percent of the country’s retail residential mortgage applications. The survey also measures the average contract interest rates for different mortgage loan products.
For the 30-year fixed-rate mortgage with conforming loan balances, it remained unchanged over a week at 4.22 percent. For those with jumbo loan balances, the average contract interest rate decreased to 4.18 percent from 4.19 percent. For those backed by FHA, the average contract interest rate fell won to 4.10 percent.
MBA’s weekly surveyhelps both borrowers and lenders observe the dynamic changes in the US mortgage market. This data, together with information like rates and home prices, may help homebuyers decide if now is the right time to purchase or refinance their mortgage.