Mortgage Applications Decrease In Latest MBA Weekly Survey / Fresh Today / CUToday.info

WASHINGTON — Mortgage applications decreased 3.8% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 12.

The Market Composite Index, a measure of mortgage loan application volume, decreased 3.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5% compared with the previous week. The Refinance Index decreased 5% from the previous week and was 17% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3% from one week earlier. The unadjusted Purchase Index decreased 5% compared with the previous week and was 3% higher than the same week one year ago.

“Last week’s CPI data showed that inflation continued to move higher, putting upward pressure on rates early in the week, but growing optimism regarding the opening of the Strait of Hormuz brought rates down again by the end of the week,” said Mike Fratantoni, MBA’s SVP and chief economist. “The net impact reduced mortgage application activity, with both purchase and refinance application volume down for the week by 3% and 5%, respectively. Purchase applications continue to run modestly ahead of last year, with last week’s volume up 3% on an annual basis, with stronger growth in conventional purchase volume while government purchase volume remained subdued.”

The refinance share of mortgage activity increased to 40.3% of total applications from 40.2% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.5% of total applications.

FHA Share

The FHA share of total applications increased to 17.5% from 17.4% the week prior. The VA share of total applications decreased to 12.9% from 13.4% the week prior. The USDA share of total applications remained unchanged from the week prior at 0.4%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) remained unchanged from 6.60%, with points remaining unchanged from 0.63 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) decreased to 6.62% from 6.66%, with points increasing to 0.57 from 0.54 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week. 

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.25% from 6.27%, with points decreasing to 0.73 from 0.78 (including the origination fee) for 80% LTV loans.  The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 6.02% from 5.99%, with points decreasing to 0.65 from 0.68 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs decreased to 5.86% from 5.96%, with points increasing to 0.81 from 0.75 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.