If last week proved that the Brexit impact is real when it comes to mortgage applications, this week’s report just confirms it.
Mortgage applications increased by 7.2% from last week, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending July 8, 2016. This week’s results included an adjustment for the Fourth of July holiday.
On an unadjusted basis, mortgage apps decreased 14% from last week. The Refinance Index increased 11% from last week, and the seasonally adjusted Purchas Index remained unchanged. The unadjusted Purchase Index decreased 20% from last week, and 5% from last year. Last year, the Fourth of July fell on the previous week.
Refinance share of mortgage activity continues to go up, now 64% of total applications, compared to 61.6% last year. The adjustable-rate mortgage share of activity, on the other hand, decreased to 5.2% of total applications.
The FHA share of total applications increased to 10% from 9.5% last week. The VA share of total applications, on the other hand, decreased to 12.1% from 12.8% last week. The USDA share of total applications remained the same at 0.6%.
The average contract interest rate for 30-year fixed-rate mortgage with conforming loan balances, balances less than $417,000, decreased to its lowest level since May 2013 at 3.6%, down from 3.66%. The average contract interest rate for 30-year fixed-rate mortgage with jumbo loan balances, balances more than $417,000, decreased to 3.61% from last week’s 3.67%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.53% from 3.56% last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.88% from 2.96% last week.
The survey reports that the average contract interest rate for 5/1 ARMs decreased to 2.78% from 2.85% last week.