Refinancing made a tiny bit of a comeback during the week ended July 13. Both the Refinancing Index, a component of the Mortgage Bankers Associations (MBAs) Market Composite Index, and the share of applications that were for refinancing regained some ground after retreating during the previous three weeks.

The overall Composite Index, a measure of mortgage volume, declined by 2.5 percent on a seasonally adjusted basis, giving back all of its gains from the prior week. On an unadjusted basis the index was up 22 percent from the week ended July 6 due to the adjustments made by MBA to account for the Independence Day holiday.

The Refinance Index increased 2 percent from the previous week and 36.5 percent of applications received were for refinancing. The prior week refinancing had a 34.8 percent share.

The seasonally adjusted Purchase Index declined by 5 percent week-over-week. The unadjusted Purchase Index increased 19 percent, again because of holiday related adjustments, and was 1 percent higher than the same week one year ago.


Refi Index vs 30yr Fixed



Purchase Index vs 30yr Fixed



Applications for FHA backed mortgages accounted for 10.6 percent of the total compared to 10.0 percent the previous week.  The VA share declined by more than a point to 10.2 percent and USDA activity ticked down from 0.8 percent to 0.7 percent.

The average contract interest rate for 30-year fixed-rate mortgages (FRM) with balances at or below the conforming limit of $453,100  increased to 4.77 percent from 4.76 percent.  Points rose to 0.46 from  0.43 and the effective rate was also higher.   

The rate for jumbo 30-year FRM, loans with balances greater than $453,100, declined to 4.66 percent from 4.68 percent.  The effective rate still increased as points rose to 0.30 from 0.24.

Thirty-year FRM backed by the FHA had an average rate of 4.78 percent with 0.69 points.  The previous week the rate was 4.80 percent with 0.75 point. The effective rate was also lower than the prior week.  

The average contract interest rate for 15-year FRM increased to 4.22 percent from 4.18 percent, and points rose 0.46 from 0.42. The effective rate increased from last week.

The average contract interest rate for 5/1 adjustable rate mortgages (ARMs) ticked down 1 basis point to 4.12 percent.  Points increased to 0.39 from 0.36 leaving the effective rate unchanged.  Applications for ARMs decreased to 6.1 percent of those received from 6.3 percent the previous 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.