Mortgage

MBA: Mortgage applications reverse course in July, increase

Average contract interest rate for 5/1 ARMs reach highest survey level

Mortgage applications increased 2.5% from last week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending July 6, 2018.

This week’s results included an adjustment for the Fourth of July holiday.

On an unadjusted basis, the index decreased 18% from the previous week.

The Refinance Index decreased 4% from the previous week to its lowest level since December 2000. The unadjusted Purchase Index decreased 15% from last week but is still 8% higher than the same week in 2017, and the seasonally adjusted Purchase Index increased from 7% from one week prior.

The refinance share of mortgage activity decreased from last week’s 37.2% to 34.8% of total applications, which is its lowest level since August 2008.

The adjustable-rate mortgage share of activity decreased to 6.3% of total applications.

The Federal Housing Administration share decreased from last week’s 10.2% to 10%, and the Veterans Affairs' share of applications increased to 11.3% from 10.7% the prior week.

The Department of Agriculture share of total applications remain unchanged from 0.8% the prior week.

The MBA reported mortgage interest rates for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) decreased from last week’s 4.79% to 4.76% this week. 

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) decreased from 4.71% last week to 4.68%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased from last week’s 4.78% to 4.80% this week.

The average contract interest rate for 15-year fixed-rate mortgages decreased from 4.22% to 4.18% this week.

Lastly, the average contract interest rate for 5/1 ARMs increased to its highest level at 4.13%, up from 4.03% last week.

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