The MBA’s Market Composite Index, which measures mortgage application volume, was up 7.2% on a seasonally adjusted basis last week from the week before. On an anudjusted basis, the index was down 14% compared to the previous week. The Refinance Index was up 11%, and the seasonally adjusted Purchase Index was unchanged from the week before. On an unadjusted basis the Purchase Index was down 20% from the previous week and was 5% lower than the same week a year ago.
However, the Fourth of July fell on the previous week last year.
The refinance share of mortgage activity jumped to 64% of total applications last week from 61.6% the week before. The adjustable-rate mortgage share, meanwhile, decreased to 5.2% of total applications.
All of this came as rates fell to lows not seen in years. The average interest rate for 30-year fixed-rate mortgages with conforming loan balances dropped to 3.60% -- its lowest level since May of 2013 – from 3.66% the previous week. The average rate for jumbo 30-year FRMs dropped to 3.61% from 3.67%.
Adjustable-rate mortgages also saw rate decreases. The average rate for 5/1 ARMs dropped to 2.78% from 2.85% the previous week.
Mortgage applications jumped more than 7% last week as rates hit their lowest level in years, according to new data from the Mortgage Bankers Association