MBA: Mortgage Applications Up 1.9% After Five Weeks Of Declines

Posted by Patrick Barnard on July 09, 2014 No Comments
Categories : Residential Mortgage

After declining for five straight weeks, mortgage applications increased 1.9%, on an adjusted basis, during the week ending July 4, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

On an unadjusted basis, volume decreased 19% compared with the previous week.

Applications for refinances increased 0.4%, on an adjusted basis, from the previous week, while purchase volume increased 4% – the largest increase in purchase volume since the week ending May 2, according to the MBA's data. On an unadjusted basis, purchase volume decreased 17% compared with the previous week and was 10% lower compared to the same week one year ago.

The refinance share of mortgage activity decreased to 52% of total applications from 53% the previous week.

Falling interest rates likely played a role in the increase in application volume. The average rate for a 30-year fixed-rate mortgage (FRM) with jumbo loan balance (greater than $417,000) was 4.24%, down from 4.26% the previous week.

The average rate for a 30-year FRM backed by the Federal Housing Administration was 4.02%, up slightly from 3.99% the week prior.

The average rate for a 15-year FRM was 3.40%, down slightly from 3.42% the previous week.

The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.24%, up from 3.21%

The ARM share of activity remained unchanged at 8% of total applications.

All rates are based on closings.

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