Applications for residential loans turned lower following the holiday week, though activity jumped when seasonal factors are excluded.
For the week that ended on July 15, the Market Composite Index moved 1 percent lower compared to the report from seven days prior.
The index,
a measure of mortgage loan application volume, was adjusted to account for seasonal variations due to the July 4 holiday.
But without any seasonal adjustments, the index jumped 24 percent from the week ended July 8, according to the Mortgage Bankers
Association, which includes the index in its Weekly Mortgage Applications Survey.
Refinance applications slipped a seasonally adjusted 1 percent from the prior report.
Refinance share rose to 64.2 percent from 64.0 percent a week earlier and 50.3 percent a year earlier.
MBA reported that applications for purchase financing dipped 1 percent from the previous week. But on an unadjusted basis, purchase business soared 23 percent from the prior week and was up 16 percent from the week ended July 17, 2015.
The report indicated that applications for mortgages insured by the Federal Housing Administration accounted for 9.9 percent of total applications. FHA share slipped from 10.0 percent and was way down from 14.0 percent a year ago.
Applications for loans guaranteed by the Department of Veterans Affairs represented 11.2 percent of total business, down from 12.1 percent a week prior and 11.3 percent a year prior.
Fixed interest rates on jumbo mortgages were a basis point higher than conforming rates. The jumbo-conforming spread was no different than in the previous report but swung from a negative 7 BPS in the year-previous report.
Adjustable-rate mortgage applications made up
5.1 percent of total activity. ARM share was trimmed from 5.2 percent in the last report and was cut from 7.3 percent in the year-earlier report.
