Application volume increases even with rising interest rates

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Mortgage application activity increased 1.4% from one week earlier despite rising interest rates, according to the Mortgage Bankers Association.

The MBA's Weekly Mortgage Applications Survey for the week ending June 30 found that the refinance index decreased 0.4% from the previous week.

The seasonally adjusted purchase index increased 3% from one week earlier, while the unadjusted purchase index increased 3% compared with the previous week and was 6% higher than the same week one year ago.

The refinance share decreased to 44.9% of total applications from 45.6% the previous week.

Adjustable-rate loan application activity increased 20 basis points to 7.2%, while the Federal Housing Administration share decreased 10 basis points to 10.2%.

The VA share remained unchanged at 10.3% and the USDA share increased 10 basis points to 0.8%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.2% from 4.13%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate increased to 4.1% from 4.09%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.04% from 4.02% percent, while for 15-year fixed-rate mortgages, the average increased to 3.43% from 3.39%.

The average contract interest rate for 5/1 ARMs increased 6 basis points to 3.37%.

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