Refinance applications saw an increase in their share of overall activity
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Applications for mortgages declined during the week ending July 13, as applications for refinances recorded a larger share of overall activity, according to the Weekly Mortgage Applications Survey released by the Mortgage Bankers Association.
The Market Composite Index, a measure of mortgage loan application volume, fell 2.5% on a seasonally adjusted basis and increased 22% on an unadjusted basis compared with the previous period. Previous results included an adjustment for the Fourth of July holiday.
The Refinance Index rose 2%. The Purchase Index decreased 5% on a seasonally adjusted basis and increased 19% on an unadjusted basis. The unadjusted Purchase Index was 1% higher compared to the same period in 2017.
Applications for refinances took a bigger share of overall activity during the period at 36.5% from 34.8% in the prior survey. The adjustable-rate mortgage (ARM) share decreased to 6.1% of total applications.
FHA applications accounted for 10.6%, up from 10%. The VA share decreased to 10.2% from 11.3%. Applications for USDA loans made up 0.7% of activity, down from 0.8%.
Changes in average contract interest rates for the various mortgage types were mixed during the period.
The 30-year fixed-rate mortgage with conforming loan balances posted a 4.77% average rate, up from 4.76%, with points increasing to 0.46 from 0.43 for 80% loan-to-value ratio loans. Rates for the 30-year fixed-rate mortgage with jumbo loan balances decreased to 4.66% from 4.68%, with points increasing to 0.30 from 0.24.
Rates for the 30-year fixed-rate mortgages backed by the FHA averaged 4.78%, down from 4.8%, with points decreasing to 0.69 from 0.75. The average for 15-year fixed-rate mortgages increased to 4.22% from 4.18%, with points decreasing to 0.42 from 0.46. 5/1 ARMs posted a 4.12% average, down from 4.13%, with points increasing to 0.39 from 0.36.
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