MBA: Mortgage Application Volume Dipped 2.6%

Posted by Patrick Barnard on June 29, 2016 No Comments
Categories : Residential Mortgage

After increasing 2.9% the previous week, mortgage application volume decreased 2.6% during the week ended June 24, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.

Applications for refinances decreased 2% despite lower rates, while applications for purchases decreased 3% from one week earlier.

On an unadjusted basis, total volume decreased 3% compared with the previous week. Applications for purchases decreased 4%, on an unadjusted basis, but increased 13% compared with the same week one year ago.

The refinance share of mortgage activity increased to 58.1% of total applications from 57.7% the previous week.

The dip in applications for refinances came as mortgage rates hit new lows for the year. The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.75%, down from 3.76% to reach the lowest level since May 2013.

The average rate for a 30-year jumbo FRM was 3.74%, up from 3.70%.

The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) remained unchanged at 3.61%.

The average rate for a 15-year FRM was 3.02%, down from 3.04%.

The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.88%, down from 2.92%.

The ARM share of activity increased to 5.9% of total applications.

Looking at government loan share, applications for mortgages backed by the FHA represented about 10.6% of all applications – down from 11.7% the previous week. The Veterans Affairs share of total applications was 12.2% of applications – up from 11.1% the week prior. The U.S. Department of Agriculture share of total applications was 0.7%, up from 0.6% the week prior.

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