Mortgage applications see weekly increase

With the exception of adjustable-rate mortgages rates, average interest rates decreased during the week

Mortgage applications see weekly increase
The number of mortgage applications rose during the week ending Aug. 4, according to Mortgage Bankers Association’s (MBA) weekly mortgage applications survey.

On a seasonally adjusted basis, there was a 3% increase in the market composite index, which measures mortgage loan application volume, from the previous week. The figure is the same on an unadjusted basis.

The index for refinances rose 5% from a week ago. The purchase index rose 1% on a seasonally adjusted basis, while the unadjusted purchase index posted a 0.3% increase from the prior week.

Refinances made up 46.7% of all mortgage activity, an increase from its 45.5% share the previous week. Adjustable-rate mortgages comprised 6.8% of total applications, an improvement from the week prior.

FHA applications fell to a 10.2% share compared to 10.3% the prior week. The VA share rose to 10.7% from 10.1%, while USDA applications made up 0.8% of total applications, unchanged from the prior week.

MBA also released data on average contract interest rates for various mortgage types, which showed rates decreasing for most types. MBA also found that effective rates for all mortgage types fell from the previous week’s rates.

The 30-year fixed-rate mortgage with conforming loan balances saw average rates fall to 4.14% from 4.17%, while 30-year fixed-rate mortgages with jumbo loan balances had a 4.07% average rate, down from 4.11% a week prior.

The average rate for 30-year fixed-rate mortgages backed by the FHA fell to 4.02% from 4.07%, and the average rate for 15-year fixed-rate mortgages decreased to 3.41% from 3.45%. Meanwhile, 5/1 ARMs saw average rates rise to 3.31% from 3.30%, the only increase during the week.

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