Applications up as fixed rates rise

by MPA09 Jul 2014
Mortgage applications were up last week, according to data from the Mortgage Bankers Association. The data included an adjustment for the July 4 holiday.

The MBA’s Market Composite Index, which measures loan application volume, was up 1.9% on a seasonally adjusted basis last week. On an unadjusted basis, the index was down 19% from the week prior. The Refinance Index was up 0.4% from the previous week, and the seasonally adjusted Purchase Index was up 4%. On an unadjusted basis, the Purchase Index fell 17% from the week prior and was 10% lower than the same week last year.

The refinance share of mortgage activity dropped to 52% last week from the previous week’s 53%. The adjustable-rate mortgage share continued to hold steady at 8% of total applications.

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 4.32% last week from the previous week’s 4.28%. The average rate for 30-year FRMs with jumbo loan balances dropped to 4.24% from 4.26%.

The average rate for Federal Housing Administration-backed 30-year FRMs increased to 4.02% from the previous week’s 3.99%. The average rate for 15-year FRMs was down, dropping to 3.4% from the previous week’s 3.42%.

The average rate for 5/1 ARMs rose to 3.24% from the prior week’s average of 3.21%.


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