According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 7th, 2017, mortgage applications have decreased by 7.4% from one week earlier on a seasonally-adjusted basis. On an unadjusted basis, the Market Composite Index, a measure of loan application volume, has decreased by 26%. (The week’s results include an adjustment for the Fourth of July holiday.)
The Refinance Index decreased by 13% over the previous week, down to its lowest level since January 2017. The seasonally-adjusted Purchase index decreased by 3%, and the unadjusted Purchase Index decreased by 22%.
The refinance share of mortgage activity decreased to 42.1% of total applications, down from 44.9% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.7% of total applications. The FHA share increased to 10.4% from 10.2%, the VA share increased to 11.5% from 10.3%, and the USDA share decreased to 0.7% from 0.8%.
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%. Points for 80% loan-to-value ratio (LTV) loans increased to 0.30 from 0.31, and the effective rate increased from last week. (All 80% LTV loan reports include the origination fee.)
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%. Points for 80% LTV loans increased to 0.3 from 0.23, and the effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.12%, up from 4.04%. Points for 80% LTV loans increased to 0.40 from 0.33. The effective rate increased from last week.
For 15-year fixed-rate mortgages, the average contract interest rate has risen to 3.50% from 3.43%. Points increased to 0.45 from 0.32 for 80% LTV loans, and the effective rate increased from last week. For 5/1 ARMs, the average contract interest rate decreased to 3.32% from 3.37%. Points increased to 0.31 from 0.22, and the effective rate decreased from last week.
