was a mixed and largely directionless week for mortgage applications as the
volume of applications for home purchases inched up fractionally while
applications for refinancing fell. The
Mortgage Bankers Association said its Market Composite Index, a measure of loan
application volume was down slightly during the week ended July 25 on both a
seasonally adjusted and a non-adjusted basis with the former decreasing 2.2
percent and the latter 2.0 percent compared to the previous week.
Refinance Index fell 4 percent, wiping out an identical gain during the week
ended July 18. The share of applications
that were for refinancing declined from 54.4 percent to 53 percent.
Refinance Index vs 30 Yr Fixed
The seasonally adjusted
Purchase Index increased
0.2 percent and the unadjusted
index was up 1 percent compared to the previous week. The unadjusted purchase index fell 12 percent
from its level during the same week in 2013.
Purchase Index vs 30 Yr Fixed
Fixed rate mortgage interest rates were
also flat. The average contract rate for
30-year fixed-rate mortgages (FRM) with conforming loan balances ($417,000 or
less) was unchanged from the previous week at 4.33 percent. Points rose to 0.24 from 0.23 and the
effective rate increased.
Interest rates for 30-year jumbo FRM
with loan balances in excess of $417,000 inched up an average of one basis
point to 4.22 percent. Points increased
to 0.23 from 0.20 and the effective rate increased.
Average interest rates for 30-year FRM
backed by FHA remained at 4.03 percent, the same as the previous week, while
points decreased to 0.00 from 0.15. The
effective rate declined.
Also unchanged were contract rates for
15-year FRM. While points decreased to
0.25 from 0.28, the rate were flat at 3.47 percent and the effective rate was
share for adjustable rate mortgages (ARMs) remained at 8 percent of all
applications. The rate for 5/1 ARMs
increased from 3.21 percent with 0.32 point to 3.31 percent with 0.40 point and
the effect rate increased.
and interest rate information are gathered by MBA through a Weekly Mortgage
Application Survey which it has conducted since 1990. The survey is conducted among mortgage banks,
commercial banks, and thrifts and covers
over 75 percent
of all U.S. retail residential mortgage
applications. Base period and value for all indexes is March 16, 1990=100. Interest rate quotes assume a mortgage with
an 80 percent loan-to-value ratio and points include the origination fee.