Mortgage applications rose by 1.3% on a seasonally-adjusted basis for the week ending June 21st, 2019, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, rose by 1% over the previous week. The Refinance Index rose 3% over the same period. The seasonally-adjusted Purchase Index fell 1%, and the unadjusted Index fell 2%.
The refinance share of mortgage activity rose to 51.5% of total applications, up from 50.2% the previous week. The adjustable-rate mortgage (ARM) share rose to 6.5% of applications. The FHA share rose to 9.6% from 9.4%, the VA share rose to 12.5% from 11.9%, and the USDA share rose to 0.6% from 0.5%.
“Markets last week reacted to a more dovish FOMC statement and forecast, with Treasury yields falling after the meeting. Mortgage rates dropped again for most loan types, which led to an increase in refinance activity, partly driven by a 9% jump in VA applications,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) fell to 4.06% from 4.14%. Points for 80% loan-to-value (LTV) loans fell to 0.35 from 0.38. (All 80% LTV loan reports include the origination fee.) The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) fell to 4.00% from 4.04%. Points for 80% LTV loans remained unchanged at 0.24, and the effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell to 4.01% from 4.12%. Points for 80% LTV loans fell to 0.36 from 0.44, and the effective rate decreased from last week.
“The 30-year fixed rate has now dropped in three of the last four weeks, and at 4.06%, reached its lowest level since September 2017. Despite these lower rates, purchase applications decreased 2%, but were still considerably higher (9%) than a year ago,” Kan said. “Now at almost the half-way mark of 2019, we have generally seen a stronger purchase market than last year, despite still-tight existing inventory and insufficient new construction.”
The average contract interest rate for 15-year fixed-rate mortgages fell to 3.40% from 3.50%. Points for 80% LTV loans fell to 0.31 from 0.33, and the effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs rose to 3.50% from 3.45%. Points for 80% LTV loans rose to 0.29 from 0.23, and the effective rate increased from last week.
