Mortgage Apps Rise on Temporary Rate Retreat

Mortgage applications, which posted eight declines in the last nine weeks,rnrecovered a bit during the week ended June 19. rnThe Mortgage Bankers Association (MBA) said mortgage applications postedrngains in all categories and the Market Composite Index, a measure of overallrnapplication volume, rose 1.6 percent on a seasonally adjusted basis and 1.0rnpercent unadjusted from the week ended June 12. </p

ThernRefinance Index increased 2 percent from the prior week and the refinancingrnshare of applications increased to 49.0 percent from 48.5 percent.  The index measuring purchase applicationsrnrose 1 percent from the previous week on a seasonally adjusted basis but wasrnunchanged on an unadjusted basis.  Thernunadjusted Purchase Index was 18 percent higher than during the same week inrn2014.  </p

Refinance Index vs 30 Yr Fixed</p

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Purchase Index vs 30 Yr Fixed</p

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The FHA share of total applicationsrndecreased to 13.9 percent from 14.2 percent and VA applications declined to a 10.9 percent from 11.5 percent thernprevious week.  The USDA share ofrntotal applications was unchanged at 0.9 percent. </p

Increasedrnapplications were probably in response to interest rates which declined on bothrna contract and effective basis for nearly all mortgages tracked by MBA’srnMortgage Application Survey.  The averagerncontract interest rate for 30-year fixed-rate mortgages (FRM) with conformingrnloan balances ($417,000 or less) was typical. rnIt decreased to 4.19 percent from 4.22 percent, with points decreasingrnto 0.38 from 0.46.  </p

Thernaverage contract interest rate for 30-year FRM with jumbo loan balances (greaterrnthan $417,000) decreased to 4.14 percent from 4.18 percent.  Points decreased to 0.35 from 0.36. </p

Thernrate for 30-year FRM backed by the FHA decreased to 3.96 percent from 4.00 percent.  Points decreased to 0.14 from 0.20</p

Therncontract rate fell by 5 basis points for 15-year FRM, to an average rate of 3.38rnpercent.  Points increased to 0.37 fromrn0.33.</p

Thernaverage contract interest rate for 5/1 adjustable rate mortgages (ARMs)rndecreased to 3.04 percent from 3.15 percent, with points decreasing to 0.46 fromrn0.52.  The ARM share of activityrnincreased to 7.0 percent of total applications, the highest level sincernDecember 2014.</p

MBA’srnsurvey covers over 75 percent of all U.S. retail residential mortgage applications,rnand has been conducted since 1990. Respondents include mortgage bankers, commercialrnbanks and thrifts. Base period and value for all indexes is March 16, 1990=100rnand rate information is based on loans with an 80 percent loan to value ratio andrnwith points that include the origination fee.

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