Mortgage apps slip again following rebound

Refinance applications saw an increase in their share of overall activity

Mortgage apps slip again following rebound

Applications for mortgages declined during the week ending July 13, as applications for refinances recorded a larger share of overall 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 2.5% on a seasonally adjusted basis and increased 22% on an unadjusted basis compared with the previous period. Previous results included an adjustment for the Fourth of July holiday.

The Refinance Index rose 2%. The Purchase Index decreased 5% on a seasonally adjusted basis and increased 19% on an unadjusted basis. The unadjusted Purchase Index was 1% higher compared to the same period in 2017.

Applications for refinances took a bigger share of overall activity during the period at 36.5% from 34.8% in the prior survey. The adjustable-rate mortgage (ARM) share decreased to 6.1% of total applications.

FHA applications accounted for 10.6%, up from 10%. The VA share decreased to 10.2% from 11.3%. Applications for USDA loans made up 0.7% of activity, down from 0.8%.

Changes in average contract interest rates for the various mortgage types were mixed during the period.

The 30-year fixed-rate mortgage with conforming loan balances posted a 4.77% average rate, up from 4.76%, with points increasing to 0.46 from 0.43 for 80% loan-to-value ratio loans. Rates for the 30-year fixed-rate mortgage with jumbo loan balances decreased to 4.66% from 4.68%, with points increasing to 0.30 from 0.24.

Rates for the 30-year fixed-rate mortgages backed by the FHA averaged 4.78%, down from 4.8%, with points decreasing to 0.69 from 0.75. The average for 15-year fixed-rate mortgages increased to 4.22% from 4.18%, with points decreasing to 0.42 from 0.46. 5/1 ARMs posted a 4.12% average, down from 4.13%, with points increasing to 0.39 from 0.36.