Applications for home loans, which have yet to feel the full impact from Brexit, slumped — with purchase financing activity off the most.
In the week that ended on June 24, the Market Composite Index moved lower by nearly 3 percent compared to one week previous.
The seasonally adjusted index, which is a measure of mortgage loan application volume, was down 3 percent even without adjustments.
Any impact from the United Kingdom’s vote to depart from the European Union has yet to be fully realized since it occurred on the last day of the week covered in the index — which is reported in the Weekly Mortgage Applications Survey from the Mortgage Bankers Association.
A seasonally adjusted 2 percent decline from the the week ended June 17 was recorded
for refinance applications. At the same time, refinance share widened to 58.1 percent from 57.7 percent a week earlier and 48.9 percent a year earlier.
Applications for purchase-money mortgages fell
3 percent from the last report. The unadjusted Purchase Index was 4 percent lower but accelerated 13 percent from the week ended June 26, 2015.
At 10.6 percent, Federal Housing Administration share was thinner than 11.7 percent one week prior and 14.0 percent one year prior.
Department of Veterans Affairs share was fatter at 12.2 percent versus 11.1 percent in the last report and 10.8 percent the same week in 2015.
Adjustable-rate mortgage activity
made up 5.9 percent of all applications. ARM share increased from 5.7 percent the previous week but thinned from 7.0 percent the same week a year previous.
Interest rates on jumbo mortgages were 1 basis point less than conforming rates. The jumbo-conforming spread was slashed from 6 BPS a week earlier
and 5 BPS a year earlier.
