The Mortgage Bankers Association reported this morning that its Market Composite Index, which measures the volume of mortgage applications, increased 1.9 percent on a seasonally adjusted basis during the week ended July 4.   On an unadjusted basis the index fell 19 percent compared to the week ended June 27.  The seasonal adjustments compensated for the Independence Day holiday which shortened the business week. 

The Refinance Index increased 0.4 percent from the previous week while the market share of refinancing applications fell from 53 percent to 52 percent. 

 

Refinance Index vs 30 Yr Fixed

The seasonally adjusted Purchase Index rose 4 percent from a week earlier but the unadjusted index was down 17 percent and was 10 percent lower than in the same week in 2013.

Purchase Index vs 30 Yr Fixed

 

Both the contract interest rate and the effective rate for 30-year fixed-rate mortgages (FRM) with conforming balances of $417,000 or less rose during the week to an average of 4.32 percent from 4.28 percent.  Points increased to 0.16 from 0.14.

The jumbo version of the 30-year FRM (loan balances in excess of $417,000) declined to 4.24 percent with 0.16 point from 4.26 percent with 0.06 point.  The effective rate increased from the prior week.

Thirty-year FRM backed by the FHA saw an average rate increase of 3 basis points to 4.02 percent.  Points increased to -0.03 from -0.33 and the effective rate was higher than a week earlier.

The 15-year FRM was the only product where the interest rate eased.  It had an average contract rate of 3.40 percent with 0.22 point, down from 3.42 percent with 0.16 point.  The effective rate was unchanged.

Adjustable rate mortgages (ARMs) again had an 8 percent share of all applications.  The average contract interest rate for 5/1 ARMs increased to 3.24 percent from 3.21 percent, with points decreasing to 0.31 from 0.33. The effective rate increased from the prior period.

MBA's data is gathered through its Weekly Mortgage Applications Survey which has been conducted since 1990.  The survey covers over 75 percent of all retail mortgage applications in the country.  Survey respondents include mortgage bankers, commercial banks and thrift.  Interest rates are quoted for loans with an 80 percent loan-to-value ratio and points include the origination fee.  Volume indices have a base period and value of March 16, 1990=100.