Mortgage Applications Climb as Purchase Loan Requests Pick Up

Mortgage applications rose last week led by an uptick in purchases even as 30-year interest rates climbed.

Mortgage loan application volume was up 1.9% for the period ending July 4 after falling the previous week, the Mortgage Bankers Association reported Wednesday. The component index for refinancing requests increased 0.4% week-over-week, while the home purchase index climbed 4%.

The weekly statistics, which cover 75% of all U.S. retail mortgage applications, included an adjustment for the July 4 holiday, the Washington-based trade group said.

Refi applications accounted for 52% of the total, down a percentage point from the previous week. Adjustable-rate mortgage applications were unchanged at 8% of total activity.

The average rate for a 30-year fixed mortgage climbed four basis points to 4.32%. The average interest rate for a mortgage backed by the Federal Housing Administration increased three basis points to 4.02%. However, a 15-year fixed mortgage saw its average interest rate drop two basis points to 3.4%.