A week-over-week drop in new mortgage applications was fueled by a decline in purchase-money applications as refinance activity ascended. The jumbo-conforming spread widened, and government share thinned.
During the seven-day period that finished on July 13, the Market Composite Index descended by 2.5 percent compared to the preceding week.
However the index, a measure of retail residential loan application volume, soared 22 percent from the week ended July 6 — which included July 4 — when seasonal factors aren’t considered.
The source of the index data is the
Weekly Mortgage Applications Survey, which was announced Wednesday by the Mortgage Bankers Association. The trade group says the survey covers more than three-quarters of all applications.
A 2 percent increase was reported for refinance applications. Refinance share widened to 36.5 percent from 34.8 percent but was still far more narrow than 44.7 percent in the report from a year ago.
MBA said applications for loans to finance a home purchase fell a seasonally adjusted 5 percent, though purchase-money activity jumped 19 percent without seasonal adjustments and was up 1 percent from the week ended July 14, 2018.
FHA share widened to 10.6 percent from 10.0 percent but thinned from 10.7 percent twelve months earlier.
But VA share retreated to 10.2 percent from 11.3 percent. A year previous, VA share was 10.7 percent.
At 6.1 percent, adjustable-rate mortgage share was lower than 6.3 percent a week earlier and 6.7 percent a year earlier.
Based on MBA’s data, interest rates on jumbo mortgages were 11 BPS lower than conforming rates. The spread widened from 8 BPS a week prior and 4 BPS a year prior.
