Mortgage apps tumble as rates rise

by Ryan Smith28 Jul 2016
Mortgage applications took an 11.2% tumble last week from the week prior as rates rose and both purchase and refi applications dropped, according to new data from the Mortgage Bankers Association.

The MBA’s Market Composite Index decreased 11.2% on a seasonally adjusted basis last week from the week prior. On an unadjusted basis, the index dropped 11% from the previous week. The Refinance Index was down 15% from the previous week, and the seasonally adjusted Purchase Index dropped 3%. On an unadjusted basis, the Purchase Index also dropped 3% from the previous week, but was still 12% higher than the same week last year.

The refinance share of mortgage activity fell to 61.1% of total applications from 64.2% the prior week. The adjustable-rate mortgage share also dropped, falling to 4.7% of total applications. The FHA and VA shares of total applications, meanwhile, rose to 10.1% and 11.9%, respectively.

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances rose to 3.69% last week from 3.65% the week before. Average rates for 30-year FRMs with jumbo loan balances rose to 3.67% from the prior week’s 3.66%. Average rates for FHA-backed FRMs were also up, increasing to 3.56% from the prior week’s 3.53%.

The average interest rate for 5/1 ARMs rose to 2.96% from 2.86% the week prior.


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