The demand for refinance applications rekindled as applications surged, driving applications as a whole higher.
According to the latest report from the Mortgage Bankers Association for the week of Aug. 5, mortgage applications increased 7.1% from one week earlier.
Refinance applications alone grew 10% from the previous week. And the refinance share of mortgage activity increased to 62.4% of total applications from 60.7% the previous week.
As far as other applications go, the Government Refinance index was up 27% and the Conventional Refinance Index was up 6% from one week earlier. The seasonally adjusted Purchase Index increased 3% from one week earlier.
The Federal Housing Administration’s share of total applications slightly increased to 10% from 9.4% the week prior, while the Veteran Affairs’ share of total applications grew to 13% from 12.1% the week prior. The United States Department of Agriculture share of total applications decreased to 0.6% from 0.7% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) dipped marginally to 3.65% from 3.67%, while the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.64% from 3.65%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA also dropped, decreasing to 3.52% from 3.54%.
The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 2.93%.
The average contract interest rate for 5/1 ARMs decreased to 2.81% from 2.90%.