Refis saw an increase in their share of overall activity
The volume of mortgage applications dropped during the week ending June 22 as applications for refinances increased their share of total activity, according to the Weekly Mortgage Applications Survey released by the Mortgage Bankers Association.
The Market Composite Index, a measure of mortgage loan application volume, fell 4.9% on a seasonally adjusted basis and dropped 6% on an unadjusted basis. The Refinance Index slipped 4%. The Purchase Index decreased 6% on a seasonally adjusted basis and fell 7% on an unadjusted basis. The unadjusted Purchase Index was 1% higher compared to the same period in 2017.
Applications for refinances accounted for 37.6% of overall activity, increasing from 36.8% over the same period. Adjustable-rate mortgages (ARM) saw their activity share decrease to 6.5% of total applications.
The FHA share of total applications increased to 10.2% from 10.1%, while VA applications increased their share to 10.7% from 10.2%. Applications for USDA mortgages accounted for 0.8%, up from 0.7%.
Changes in average contract interest rates for the various mortgage types were mixed during the period.
Rates for the 30-year fixed-rate mortgage with conforming loan balances increased to 4.84% from 4.83%, with points decreasing to 0.42 from 0.48 for 80% loan-to-value ratio loans. The average for 30-year fixed-rate mortgages with jumbo loan balances was 4.7%, down from 4.79%, with points decreasing to 0.26 from 0.36.
The 30-year fixed-rate mortgage backed by the FHA averaged 4.81%, down from 4.82%, with points decreasing to 0.69 from 0.84. The average for 15-year fixed-rate mortgages increased to 4.29% from 4.27%, with points decreasing to 0.40 from 0.53. Rates for 5/1 ARMs averaged 4.01%, down from 4.06%, with points decreasing to 0.41 from 0.54.