Mortgage Applications Decline, but Purchases Increase Slightly
Mortgage application volume decreased from the previous week as refinances fell but purchase activity rose slightly.
The Mortgage Bankers Association's weekly index showed that loan applications were down 2.2% for the period ending July 25, after increasing a week earlier.
The decline occurred because of a 4% drop in refinances, according to the Washington-based trade group. However, the purchase index rose 0.2% from the previous week as home prices begin to stabilize and the interest rate environment remains low.
The average interest rate for a 30-year fixed mortgage remained unchanged at 4.33%. A 30-year mortgage rate backed by the Federal Housing Administration also held steady at 4.03%. Borrowers looking for a 15-year mortgage saw average rates of 3.47%, the same as the week before.
Refinances accounted for 53% of total applications, the MBA said on Wednesday, while adjustable-rate mortgages represented 8% of the loan volume.
The MBA's weekly survey covers over 75% of all U.S. retail residential mortgage applications.