The Refinance Index notably dropped 13% to reach the lowest level since January, while the seasonally adjusted Purchase Index dropped 4% from the week prior. On an unadjusted basis, the Purchase Index decreased 22% compared to the week prior and was 3% higher than the same week last year.
Refinance activity also saw a decrease last week, to 42.1% of total mortgage applications from 44.9% the previous week. Meanwhile, the adjustable-rate mortgage (ARM) share of total mortgage activity dropped to 6.7% of total applications.
applications increased to 10.4% of total applications from the prior week’s 10.2%; VA
applications rose to 11.5% from last week’s 10.3%, and USDA applications dipped to 0.7% from 0.8%.
Figures from Bankrate revealed that mortgage rates took a breather this week after three weeks of consecutive increases. The benchmark 30-year fixed mortgage rate slipped to 4.13%, while the average 30-year fixed mortgage has an average of 0.28 discount and origination points.
“Mortgage shoppers should also take some comfort from Federal Reserve Chair Janet Yellen's assurances in her testimony on Capitol Hill Wednesday that inflation is moving at a moderate pace and that the key federal funds rate ‘is likely to remain below levels that prevailed in previous decades’,” Bankrate said.
Mortgage applications higher, so are rates
Mortgage risk hits 2-year high
Mortgage applications fell 7.4% for the week ending July 7. On an unadjusted basis, the Mortgage Bankers Association’s market composite index declined by 26%.