The volume of mortgage applications recovered for the week ending July 6 after declining in the previous period, according to the Weekly Mortgage Applications Survey released by the Mortgage Bankers Association.
The Market Composite Index, a measure of mortgage loan application volume, gained 2.5% on a seasonally adjusted basis but dropped 18% on an unadjusted basis. The results included an adjustment for the Fourth of July holiday.
The Refinance Index slipped 4% from the previous period to its lowest level since December 2000. The Purchase Index rose 7% on a seasonally adjusted basis but declined 15% on an unadjusted basis. The unadjusted Purchase Index was 8% higher compared to the year-ago level.
Refinance applications saw their share of overall activity decline to its lowest level since August 2008. They accounted for 34.8% of total applications during the period, down from the previous 37.2% share. The adjustable-rate mortgage (ARM) share of activity decreased to 6.3% of total applications.
Applications for FHA loans accounted for 10%, down from 10.2%. The VA share of total applications increased to 11.3% from 10.7%. USDA applications had a 0.8% share, remaining unchanged from the previous survey.
Changes in the average contract interest rates for various mortgage types were mixed during the period, with rates for 5/1 ARMs increasing to 4.13%, their highest level in the history of the survey, from 4.03%, with points increasing to 0.36 from 0.25. MBA began tracking interest rates on 5/1 ARMs in January 2011.
Rates for the 30-year fixed-rate mortgage with conforming loan balances decreased to 4.76% from 4.79%, with points increasing to 0.43 from 0.41. There was also a decrease in the rates for 30-year fixed-rate mortgages with jumbo loan balances to 4.68% from 4.71%, with points decreasing to 0.24 from 0.43.
The 30-year fixed-rate mortgage backed by the FHA posted an average rate of 4.8%, up from 4.78%, with points increasing to 0.75 from 0.73. The average for 15-year fixed-rate mortgages decreased to 4.18% from 4.22%, with points decreasing to 0.46 from 0.47.
Rates are down but so are applications
Mortgage app volume slips