Mortgage applications for the week ending July 24 rose by nearly a percentage point, according to the Mortgage Bankers Association.
The MBA's market composite index rose eight basis points week-over-week on an adjusted basis, 1% on an unadjusted basis. However, the seasonally adjusted purchase index shrank by a basis point, though on an unadjusted basis the same index
The refinance index increased 2% from the previous week, a sign that consumers recognize the current low interest rate environment and want to take advantage of it before rates potentially go up at the Federal Reserve's next meeting this fall. The refinance share of mortgage activity as a whole increased three basis points to 50.6%.
Average interest rates for 30-year fixed-rate mortgages decreased six basis points to 4.17% annually, the lowest level since last month. Jumbo 30-year fixed-rate mortgage interest rates dropped four basis points, to 4.12%, their lowest rate since May, though 80% LTV loan rates increased two basis points to 0.35%.
The average interest rate for 15-year fixed-rate mortgages also decreased four basis points, to 3.39%, the lowest since June. However, 80% LTV rates also increased for these loans, four basis points, to 0.38%.
Government-backed mortgage applications shrank as a share of total prospective home loans. The Federal Housing Administration's share of total applications decreased three basis points to 13.7% while the Veterans Administration's total share shrank four basis points, to 10.9%. The U.S. Department of Agriculture share of applications remained at 0.9%.
