Despite a week-over-week decline in new applications for mortgages, the volume of people applying for loans to finance a home purchase has strengthened from a year ago.
During the week ended
July 7, the Market Composite Index declined more than 7 percent from the prior week. The index was adjusted to reflect the Fourth of July holiday.
The index, which is a measure of retail
residential loan application volume, plummeted 26 percent from the week ended June 30 without any adjustments made for seasonality.
Application data was revealed by the Mortgage Bankers Association in its Weekly Mortgage Applications Survey. MBA says the survey covers more than three-quarters of all applications.
The report indicated that applications for refinances retreated 13 percent from the previous report. At the same time, refinance share thinned to 42.1 percent from 44.9 percent a week earlier and was slashed from 64.0 percent a year earlier.
A seasonally adjusted 3 percent week-over-week decline was recorded for purchase-money-applications.
When seasonal factors are disregarded, purchase activity plunged 22 percent from the prior week — though there was a 3 percent year-over-year gain.
At 10.4 percent, the share of applications for mortgages insured by the Federal Housing Administration was wider than 10.2 percent the preceding week and 10.0 percent in the week ended July 8, 2016.
Also widening was the share of applications for loans guaranteed by the Department of Veterans Affairs — to 11.5 percent from 10.3 percent. VA share was more narrow, though, than 12.1 percent twelve months earlier.
Applications for adjustable-rate mortgages made up 6.7 percent of overall activity, the trade group reported. In the same week last year, ARM share was 5.2 percent.
Finally, rates on jumbo mortgages were 3 basis points lower than conforming rates. The jumbo-conforming spread thinned from a negative 10 BPS the prior week and swung from a positive 1 basis point a year prior.
