Mortgage applications fell by 3.4% on a seasonally-adjusted basis for the week ending June 14th, 2019, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, decreased 4% from the previous week. The Refinance Index fell 4% over the same period. The seasonally-adjusted Purchase Index fell 4%, and the unadjusted Index fell 5%.
The refinance share of mortgage activity rose to 50.2% of total applications, up from 49.8%. The adjustable-rate mortgage (ARM) share of activity fell to 6.1%. The FHA share rose to 9.4% from 8.9%, the VA share rose to 11.9% from 11.0%, and the USDA share fell to 0.5% from 0.6%.
“After seeing a six-week streak, mortgage rates for 30-year loans increased slightly, which led to a pullback in overall refinance activity,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Borrowers were sensitive to rising rates, but the refinance share of applications was still at its highest level since January 2018, and refinance activity was at its second highest level this year. Government refinances actually increased last week, led by a 17 percent in VA refinance applications, while conventional refinance applications decreased 7 percent.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) rose to 4.14% from 4.12% the previous week. Points for 80% loan-to-value ratio (LTV) loans rose to 0.38 from 0.33. (All 80% LTV loan reports include the origination fee.) The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) remained unchanged at 4.04%. Points for 80% LTV loans rose to 0.24 from 0.17, and the effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose to 4.12% from 4.09%. Points for 80% LTV loans rose to 0.44 from 0.26, and the effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages fell to 3.50% from 3.53%. Points for 80% LTV loans rose to 0.33 from 0.32, and the effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs rose to 3.45% from 3.43%. Points for 80% LTV loans fell to 0.23 from 0.32, and the effective rate decreased from last week.
