Mortgage application volume continues to slowly increase

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Mortgage Bankers AssociationThe latest weekly mortgage applications survey from (MBA) shows mortgage applications rose 0.7% on a seasonally adjusted basis from the previous week, according to data for the week ending June 24 .

On an unadjusted basis, the composite market index was down 20% from the previous week. This week’s results include an adjustment for observance of the June 16 holiday.

The refinancing index rose 2% from the previous week and was 80% lower than the same week a year ago. The seasonally adjusted purchases index rose 0.1% from the previous week. The unadjusted buy index was down 21% from the previous week and was 24% lower than the same week a year ago.

“Mortgage rates continue to experience significant fluctuations. After rising 65 basis points over the past three weeks, the 30-year fixed rate fell 14 basis points last week to 5.84%. Rates are still significantly higher than they were a year ago, when the 30-year fixed rate was 3.2%,” comments Joel Kan, associate vice president of economic and industry forecasts at the MBA. . “The drop in mortgage rates led to a slight increase in refinancing, driven by an increase in conventional loans. However, refinances are still 80% lower than a year ago and more than 60% lower than the historical average. »

“Overall buying activity has weakened in recent months due to rapidly rising mortgage rates, high house prices and growing economic uncertainty,” Kan adds. . The average purchase loan amount fell to $413,500, highlighting a continued downward trend seen since hitting a record high of $460,000 in March 2022.”

The refinancing share of mortgage activity rose to 30.3% of total applications from 29.7% the previous week. The share of adjustable rate mortgage (ARM) activity declined to 10.1% of total applications.

FHA’s share of total claims remained unchanged at 12% from the previous week. VA’s share of total claims rose to 11.2% from 10.7% the previous week. USDA’s share of total applications rose to 0.6% from 0.5% the previous week.

The average contract interest rate for 30-year fixed rate mortgages with conforming loan balances ($647,200 or less) decreased to 5.84% from 5.98%, with points dropping from 0 .77 to 0.64 (including origination fees) for 80% loan-to-loan to value (LTV) ratio. The effective rate decreased compared to last week.

The average contractual interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $647,200) fell from 5.49% to 5.42%, with points rising from 0.45 at 0.28 (including origination fees) for 80% LTV loans. The effective rate decreased compared to last week.

The average contractual interest rate for FHA-backed 30-year fixed-rate mortgages remained at 5.62%, with points rising from 1.18 to 1.15 (including origination fees) for 80% LTV loans. The effective rate decreased compared to last week.

The average contractual interest rate for 15-year fixed rate mortgages increased from 5.05% to 5.06%, with points increasing from 0.86 to 0.72 (including origination fees) for 80% LTV loans. The effective rate decreased compared to last week. Average contract interest rate for 5/1 ARMs increased from 4.78% to 4.64%, with points rising from 0.84 to 0.72 (including origination fees) for loans 80% LTV. The effective rate decreased compared to last week.

Image: “Guptill House in Sarasota Florida” by trishhartmann is licensed under DC BY 2.0

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