Mortgage applications decreased after last week’s slight increase, falling 7.4% from one week earlier, according the Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey for the week ending July 7, 2017.
However, this week’s results include an adjustment for the Fourth of July holiday.
Driving the major drop in applications, the Refinance Index decreased 13% from the previous week to the lowest level since January 2017.
The seasonally adjusted Purchase Index, though, also decreased, dropping 3% from one week earlier.
The refinance share of mortgage activity decreased to 42.1% of total applications from 44.9% the previous week. The adjustable-rate mortgage share of activity decreased to 6.7% of total applications.
The Federal Housing Administration’s share of total applications increased to 10.4% from 10.2% the week prior, while the Veterans Affairs’ share of total applications increased to 11.5% from 10.3% the week prior.
However, the Department of Agriculture’s share of total applications decreased to 0.7% from 0.8% the week prior.
For mortgage product rates, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.22% from 4.20%.
Similarly, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased to 4.19% from 4.10%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.12% from 4.04%, while the average contract interest rate for 15-year fixed-rate mortgages increased to 3.50% from 3.43%.
Lastly, the average contract interest rate for 5/1 ARMs decreased to 3.32% from 3.37%.