Mortgage applications rose by 2.5% on a seasonally-adjusted basis over the week ending July 6th, 2018, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. This week includes an adjustment for the Fourth of July holiday.
On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, fell 18% over the previous week. The Refinance Index fell by 4% from the previous week, down to its lowest level since December 2000. The seasonally-adjusted Purchase Index rose 7% over the previous week, while the unadjusted Purchase Index fell 15%.
The refinance share of mortgage activity fell to 34.8% of total applications, the lowest level since August 2008, from 37.2% the previous week. The adjustable-rate mortgage (ARM) share of activity fell to 6.3% of total applications. The FHA share fell to 10.0% from 10.2%, the VA share rose to 11.3% from 10.7%, and the USDA share remained unchanged at 0.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) fell to 4.76% from 4.79%. Points for 80% loan-to-value ratio (LTV) loans rose to 0.43 from 0.41. (All 80% LTV loan reports include the origination fee.) The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) fell to 4.68% from 4.71%. Points for 80% LTV loans fell to 0.24 from 0.43, and the effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose to 4.80% from 4.78%. Points for 80% LTV loans rose to 0.75 from 0.73, and the effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages fell to 4.18% from 4.22%. Points for 80% LTV loans fell to 0.46 from 0.47, and the effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 4.13%, the highest level in the history of the survey, from 4.03%. (MBA began tracking interest rates for 5/1 ARMs in January 2011.) Points for 80% LTV loans rose to 0.36 from 0.25, and the effective rate increased from last week.
