In a report delayed from its usual Wednesday release by the July 4th holiday, The Mortgage Bankers Association (MBA) said on today that increased purchase mortgage activity pushed overall business higher during the pre-holiday week ended June 30.  The MBA's Market Composite Index, a measure of loan application volume, was up 1.4 percent on a seasonally adjusted basis during the week ended June 30 and was 1.0 percent higher on an adjusted basis than the week ended June 23.

Both the seasonally adjusted and the unadjusted Purchase Indices were up by 3.0 percent and the unadjusted index was 6 percent higher than during the same week in 2016. The Refinance Index was down for the second straight week, declining 0.4 percent and the refinance share of applications retreated to 44.9 percent from 45.6 percent a week earlier.

Refi Index vs 30yr Fixed

Purchase Index vs 30yr Fixed

Applications for mortgages were apportioned across loan types as follows; 10.2 percent were for FHA loans, down from 10.3 percent the previous week and the VA share was unchanged at 10.3 percent. The USDA share increased to 0.8 percent from 0.7 percent.

Interest rates increased for all loan types on a contract basis and on an effective basis for all but the FHA-backed 30-year fixed-rate mortgage (FRM). That product had an average contract rate of 4.04, up from 4.02 percent.  Points dropped to with 0.33 from 0.41 point, leaving the effective rate unchanged. 

The average contract interest rate for conforming 30-year FRM, loans with balances of $424,100 or less, increased by 7 basis points to its highest level since May 2017, 4.20 percent.  Points decreased to 0.31 from 0.32.  

The jumbo 30-year FRM, loans with balances above the conventional loan limit, also returned to its highest rate since May.  The contract rate averaged 4.10 percent, compared to 4.09 percent a week earlier. Points increased to 0.23 from 0.20.

The average contract interest rate for 15-year FRM was 3.43 percent, its highest level since May, up from 3.39 percent. Points dipped to 0.32 from 0.33.

The average contract interest rate for 5/1 adjustable rate mortgages (ARMs) rose to the highest level since March, 3.37 percent with 0.22 point. The previous week the rate was 3.31 percent with 0.25 point.    The ARM share of activity increased to 7.2 percent of total applications from 7.0 percent the prior week.

MBA's Weekly Mortgage Applications Survey has been conducted since 1990 and covers over 75 percent of all U.S. retail residential mortgage applications.  Respondents include mortgage bankers, commercial banks and thrifts.  Base period and value for all indexes is March 16, 1990=100 and interest rate information is based on loans with an 80 percent loan-to-value ratio and points that include the origination fee.