Compared to a year ago, refinance share of mortgage applications has been slashed by 15 percentage points.During that same period, though, purchase application volume has risen by nearly a 10th.
New residential applications during the week ended July 28 for loans to finance a home purchase or refinance an existing
mortgage declined a seasonally adjusted almost 3 percent from a week earlier.
That was according to the Market Composite Index, a measure of retail mortgage loan application volume. The index still moved down 3 percent when seasonal factors are not considered.
The Mortgage Bankers Association produced the index based on its
Weekly Mortgage Applications Survey, which reportedly covers more than three-quarters of all applications.
MBA’s survey indicated that applications for refinances were down 4 percent from the week ended July 21. The decline reflected thinning refinance share, which was trimmed to 45.5 percent from 46.0 percent a week earlier. But refinance share has significantly diminished from
60.7 percent a year earlier.
Applications for mortgages to finance a home purchase slipped 2 percent on a seasonally adjusted basis. Without seasonal adjustments, purchase activity still slowed by 2 percent. But unlike refinance business, purchase-money applications have improved by 9 percent versus the week ended July 29, 2016.
The trade group reported that 10.3 percent of the latest week’s volume was for loans insured by the Federal Housing Administration. FHA share was more broad than 10.2 percent in the prior seven-day period and 9.4 percent in the same seven days during 2016.
Applications for loans guaranteed by the Department of Veterans Affairs moved in a different direction, though, than FHA. VA applications made up 10.1 percent of total activity, thinning from 10.5 percent in the last report and 12.1 percent one year previous.
6.6 percent, adjustable-rate mortgage share was more narrow than 6.8 percent in the preceding report. But ARM share has widened from 4.7 percent in the report for the same week in the preceding year.
The trade group had interest rates on
jumbo mortgages 6 basis points lower than conforming rates. The jumbo-conforming spread thinned from a negative 11 BPS the week before and a negative 2 BPS one year earlier.