Mortgage Applications Drop Again as Rates Fall
Mortgage applications took another dip last week despite interest rates across all loan categories decreasing.
The Mortgage Bankers Association's index fell 1% in the period ended June 20, following a 9.2% drop the prior week, the Washington-based trade group said.
The refinancing index was down 1%, which is much less than the 12.7% plunge experienced during the previous week. Meanwhile, the measure for purchase applications also decreased 1% for the week ending June 20.
The average rate on a 30-year mortgage slipped to 4.33% from 4.36%. The average rate on a 15-year fixed loan fell to 3.47% from 3.5%.
Additionally, the interest rate for jumbo loans decreased to 4.28% from 4.32%, while mortgages backed by the Federal Housing Administration were down to 4.03% from 4.07%.
The refinance share of mortgage activity remained unchanged at 52% of total applications, while the adjustable-rate mortgage share stayed at 8%, Wednesday's report showed.