Refinance activity hits 3-year high, mortgage applications edge up
The number of mortgage applications filed in the U.S. edged up a slight 0.9% for the week ending July 20 as refinance activity hit a three-year high, an industry trade group said.
The Mortgage Bankers Association noted its refinance index grew 2% from the previous week, its highest level since April 2009. Meanwhile, home purchases slowed with the seasonally adjusted purchase index falling 3% from the previous week.
Refinance activity made up 81% of all mortgage applications, a slight increase from 80% a week earlier.
In addition, the 30-year, fixed-rate mortgage with a conforming loan balance held steady at 3.74%, its lowest rate in history. The 30-year, FRM for jumbo loans grew to 3.99% from 3.98%, while the 30-year, FRM backed by the FHA fell to 3.52% from 3.55%.
The 15-year, FRM fell to 3.07% from 3.12%, and the average contract interest rate for 5/1 ARMs declined to 2.68% from 2.71%.