Little Change in Mortgage Apps Despite Lower Rates

Even asrnmortgage interest rates retreated across the board last week Mortgagernapplication volume remained essentially unchanged.  The Mortgage Bankers Association (MBA)rnreports that applications for mortgages during the week ended June 27 were downrn0.2 percent on a seasonally adjusted basis according to its Market CompositernIndex and down 1 percent on a non-seasonally adjusted basis.</p

ThernRefinance Index ticked up 0.1 percent from the week ended June 20 and the sharernof all applications that were for the purpose of refinancing rose from 52rnpercent to 53 percent.  </p

Refinance Index vs 30 Yr Fixed</p

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Both the seasonallyrnadjusted and the unadjusted Purchase Index slipped 1 percent from the previousrnweek and the unadjusted index was 16 percent below its level in the same weekrnin 2013. </p

Purchase Index vs 30 Yr Fixed</b</p

Rates for<b15-year FRM fell to 3.42 percent from 3.47 percent.  Points decreased from 0.19 to 0.16. </p

Adjustable rate mortgages (ARM) oncernagain had an 8 percent market share.  Thernrate for the 5/1 ARM decreased 2 basis points to 3.21 percent with points increasingrnto 0.33 from 0.27.  </p

MBArncollects interest rate and application data through a Weekly MortgagernApplications Survey which it has conducted since 1990.  The survey covers over 75 percent of all U.S.rnretail residential mortgage applications. rnRespondents include mortgage bankers, commercial banks and thrifts. Interestrnrates presume a mortgage with an 80 percent loan-to-value ratio and pointsrninclude the origination fee.  Base periodrnand value for all indexes is March 16, 1990=100. </p

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