Mortgage applications decreased by 0.1% on a seasonally-adjusted basis for the week ending June 28th, 2019, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, fell 0.3% from the previous week. The Refinance Index fell by 1% over the same period, and both the seasonally-adjusted and unadjusted Purchase Index rose by 1%.
“Purchase applications picked up slightly last week, as conventional and government activity were each up around 1%. Furthermore, in continuation of the gradual growth trend seen throughout the first half of 2019, purchase activity was almost 10% higher than a year ago,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “A still-strong job market, improving affordability and lower mortgage rates continue to support growth.”
The refinance share of mortgage activity fell to 51.0% of total applications, down from 51.5% the previous week. The adjustable-rate mortgage (ARM) share of activity fell to 5.2%. The FHA share rose to 10.1% from 9.6%, the VA share rose to 12.8% from 12.5%, and the USDA share remained unchanged at 0.6%.
“Conventional refinances dropped slightly over the week, but there was a pick-up in government refinances, with FHA activity jumping 17%,” Kan adds. “Additionally, the average loan amount for government refinance applications reached another survey high at $282,500. In a week of mixed mortgage rate movements across the various loan types, the 30-year fixed rate finished slightly higher than last week, but was still close to lows last seen in 2016.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) rose from 4.07% from 4.06% the previous week. Points for 80% loan-to-value ratio (LTV) loans rose to 0.36 from 0.35. (All 80% LTV loan reports include the origination fee.) The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) remained unchanged at 4.00%. Points for 80% LTV loans rose to 0.25 from 0.24, and the effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell to 3.97% from 4.01%. Points for 80% LTV loans fell to 0.30 from 0.36, and the effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages rose to 3.42% from 3.40%. Points for 80% LTV loans rose to 0.32 from 0.31, and the effective rate increased from last week.
The average contract interest rate for 5/1 ARMs fell to 3.46% from 3.50%. Points for 80% LTV loans fell to 0.26 from 0.29, and the effective rate decreased from last week.
