An increase in applications for loans to finance a home purchase more than offset a modest decline in the volume of applications for mortgage refinances.
Mortgage loan originators generated a seasonally adjusted 1 percent more in new loan applications in the week that concluded on June 30 than a week prior.
That was according to the Market Composite Index, a measure of retail residential loan applications. Without seasonal adjustments, volume still rose a percent.
The index was derived from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey which reportedly covers more than three-quarters of all applications.
Applications for loans to finance a home purchase ascended a seasonally adjusted 3 percent from the week ended
June 23. Without seasonal adjustments, purchase-money activity was still up 3 percent from a week earlier and 6 percent from a year earlier.
MBA reported that refinance applications slowed by less than a percent on a week-over-week basis. Refinance share was 44.9 percent, more narrow than 45.6 percent in the preceding report
and 61.6 percent in the week ended July 1, 2016.
The report indicated that applications for mortgages insured by the Federal Housing Administration made up 10.2 percent of overall volume. FHA share was trimmed from 10.3 percent during the prior seven-day period but widened from 9.5 percent the same week last year.
Another 10.3 percent of applications were for loans guaranteed by the Department of Veterans Affairs. Although VA share was no different than in the prior report, it was far thinner than 12.8 percent a year prior.
Applications for adjustable-rate mortgages accounted for 7.2 percent of total applications. ARM share widened from 7.0 percent the previous week and 5.6 percent one year previous.
MBA reported interest rates on jumbo mortgages that were 10 basis points lower than conforming rates. The jumbo-conforming spread widened from a negative 4 BPS the previous week
and swung from a positive basis point the same week in 2016.
