Residential application volume declined for the fourth consecutive week -- this time by just over 5% for the week ending July 8, according to new figures compiled by the Mortgage Bankers Association.
The numbers are adjusted for the July 4 holiday. The drop in applications came despite the continued decline in mortgages rates, a sign that consumers are still spooked by weak home values and a poor employment picture.
MBA’s Refinance Index declined by 6.2%, bringing it to its lowest point since the end of April. When compared to the same week in 2010, the index is down 42%.
The seasonally adjusted Purchase Index decreased 2.6% from the previous week. On an unadjusted basis, the Purchase Index is 0.2% lower than the same week in 2010.
The market share of refi applications decreased to 65.6% from 66.4% the week prior. MBA tracks activity through its proprietary application index.
The average contract interest rate for 30-year FRMs fell 14 basis points to 4.55%, with points increasing to 0.99 from 0.90 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for the 15-year FRM was down by 11 basis points, to 3.68%, while points increased to 1.10 from 0.88.
