Mortgage Apps Bounce Back despite slightly higher rates

The Mortgage Bankers Association reported this morning that its Composite index of the market, which measures the volume of mortgage loan applications, an increase of 1.9% on a basis-seasonally adjusted during the week ended July 4.   On an unadjusted basis the index declined 19% from the week was completed on 27 June.  Seasonal adjustments compensated for the celebration of Independence Day, which shortened the business week.

The refinance index increased 0.4% from the previous week while the market share of applications for refinancing fell from 53% to 52%.

Refinance Index vs 30 year fixed

Adjusted for seasonal variations in the purchase Index increased by 4% from a week earlier, but the unadjusted index was decrease of 17% and 10% lower than that in the same week in 2013.

Purchase Index vs 30 yr fixed

Both the contractual interest rate and the effective rate for fixed-rate mortgages (FRM) age 30 with consistent balances of $417,000 or less have increased during the week to an average of 4.32% to 4.28%.  Points increased from 0.14 to 0.16.

Version jumbo FRM for 30 years (balance of loans exceeding $ 417,000) 4.26% to 0.06 point fell to 4.24% 0.16 point.  The rate has increased since the previous week.

FRM thirty years backed by FHA saw an increase in the average rate of 3 basis points to 4.02%.  Points is passed to-0.03-0.33 and the effective rate was higher than a week earlier.

The 15-year FRM was the only product where the interest rate eased.  It had a rate of 3.40% average contract and 0.22 point, down 3.42 percent with 0.16 point.  The rate remained unchanged.

Rate mortgages adjustable (weapons) again had a share of 8% of all applications.  The average interest rate of contract for 5/1 arm is passed to 3.24% 3.21%, with points, passing to 0.31 0.33. The rate has increased since the previous period.

MBA data are collected through its weekly mortgage applications survey which has been conducted since 1990.  The survey covers more than 75 percent of all retail mortgage applications in the country.  Respondents include mortgage bankers, commercial banks and thrift.  Interest rates are quoted for loans with a loan-to-value ratio of 80 percent and is home to the departure tax.  Volume indices have a base period and value of March 16, 1990 = 100.

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