Mortgage applications decreased 7.1% from one week earlier, according to data from the Mortgage Bankers Association's (MBA) weekly mortgage applications survey for the week ending June 22.
The MBA's market composite index fell 7.1% on both a seasonally adjusted basis and an unadjusted basis from one week earlier. The refinance index decreased 8% from the previous week, while the refinance share of mortgage activity decreased to 79% of total applications from over 80% the previous week.Â
The seasonally adjusted purchase index decreased 1% from one week earlier. The unadjusted purchase index decreased more than 2% compared with the previous week and was almost 3% lower than the same week one year ago.
‘Refinance volume fell last week due largely to a fall-off in refinance applications for government loans, which had more than doubled the prior week,’ says Michael Fratantoni, the MBA's vice president of research and economics. ‘The large swings in activity were due to the implementation of [the Federal Housing Administration's] new premiums on streamline refinances, and borrowers' timing their applications to lower their premiums.’