Mortgage Applications slowed for the second straight time last week but the loss was modest compared to the 9.2 percent plunge during the week that preceded it. The Mortgage Bankers Association's (MBA) Mortgage Applications Survey found that applications for mortgages during the week ended June 20 were 1 percent lower on a seasonally adjusted basis than during the week ended June 13. The loss brought the Market Composite Index, a measure of application volume, down to its lowest level since April. On an unadjusted basis the index was down 2.0 percent.
The Refinance Index retreated to its May levels, sliding another 1 percent. Applications for refinancing held the same 52 percent share of all applications received as during the previous week.
Refinance Index vs 30 Yr Fixed
The seasonally adjusted Purchase Index lost 1 percent and the unadjusted index was 2 percent lower than the week before. The unadjusted index was 18 percent below its level during the same week in 2013.
Purchase Index vs 30 Yr Fixed
Both the contract and the effective interest rates for fixed rate loans were lower than during the previous week. The average contract interest rate for 30-year fixed-rate mortgages (FRM) with conforming balances of $417,000 or less was 4.33 percent with 0.18 point compared to 4.36 percent with 0.24 point. The rate for 30-year jumbo FRM decreased to 4.28 percent from 4.32 percent while points increased to 0.12 from 0.09.
Rates for FHA-backed 30-year FRM fell by 4 basis points to 4.03 percent. Points declined to -0.38 point from -0.39 point.
Fifteen-year FRM had an average contract rate of 3.47 percent with 0.19 point. The previous week the rate was 3.50 percent with 0.16 point.
Eight percent of the applications received during the period were for adjustable rate mortgages (ARMs). The contract rate for the most popular of those loans, the 5/1 ARM, increased to 3.23 percent from 3.20 percent with points unchanged at 0.27. The effective rate also increased.
MBA's weekly survey covers over 75 percent of all U.S. retail residential mortgage applications. Respondents to the survey, which has been conducted since 1990, include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100 and interest rates are quoted for loans with an 80 percent loan-to-value ratio. Points include the origination fee.