mortgage interest rates retreated across the board last week Mortgage
application volume remained essentially unchanged. The Mortgage Bankers Association (MBA)
reports that applications for mortgages during the week ended June 27 were down
0.2 percent on a seasonally adjusted basis according to its Market Composite
Index and down 1 percent on a non-seasonally adjusted basis.
Refinance Index ticked up 0.1 percent from the week ended June 20 and the share
of all applications that were for the purpose of refinancing rose from 52
percent to 53 percent.
Refinance Index vs 30 Yr Fixed
Both the seasonally
adjusted and the unadjusted Purchase Index slipped 1 percent from the previous
week and the unadjusted index was 16 percent below its level in the same week
Purchase Index vs 30 Yr Fixed
interest rates declined during the week for all mortgage products as did
effective rates for fixed-rate products.
The average contract rate for 30-year fixed rate mortgages (FRM) with
conforming loan balances of $417,000 or less was 4.28 percent with 0.14
point. The previous week the rate had
been 4.33 percent with 0.18 point.
version of the 30-year FRM (balances greater than $417,000) decreased 2 basis
points to 4.26 percent. Points decreased
to 0.06 from 0.12.
interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to
3.99 percent from 4.03 percent. Points
rose to -0.33 from -0.38.
15-year FRM fell to 3.42 percent from 3.47 percent. Points decreased from 0.19 to 0.16.
Adjustable rate mortgages (ARM) once
again had an 8 percent market share. The
rate for the 5/1 ARM decreased 2 basis points to 3.21 percent with points increasing
to 0.33 from 0.27.
collects interest rate and application data through a Weekly Mortgage
Applications Survey which it has conducted since 1990. The survey covers over 75 percent of all U.S.
retail residential mortgage applications.
Respondents include mortgage bankers, commercial banks and thrifts. Interest
rates presume a mortgage with an 80 percent loan-to-value ratio and points
include the origination fee. Base period
and value for all indexes is March 16, 1990=100.