The market share of refinance applications fell to their lowest percentage since April 2011, as the total number of loan applications submitted the week ended July 12 declined by 2.6% on a seasonally adjusted basis from the previous week, the Mortgage Bankers Association said. The MBA adjusted the results from
On an unadjusted basis, MBA’s Market Composite Index increased 22% over the prior week.
The Refinance Index decreased 4% from the previous week to its lowest level since July 2011 while the seasonally adjusted Purchase Index increased 1% from one week earlier. On an unadjusted basis, purchase apps were 26% higher than the week of July 5 and 5% higher for the same week in 2012.
The share of refi apps fell to 63% from 64%. The portion of refi apps for the Home Affordable Refinance Program decreased to 34% from 35%.
HSH.com’s weekly mortgage radar found rates for the 30-year fixed-rate mortgage fell four basis points during the week ended Tuesday, to 4.57%.
"After a tumultuous period, markets have calmed somewhat and are now intently watching incoming economic data, as is the Fed, looking for clues as to when the Fed will start to taper its purchases of mortgages and treasury bonds," said Keith Gumbinger, vice president of HSH.com.
“The economy is moving forward without much momentum, and now has an additional headwind of higher rates and higher gasoline prices. As such, we may not get a burst of growth which compels the Fed to move very quickly. The weeks ahead will be revealing in that regard."
Zillow Mortgage Marketplace’s rate tracker shows the 30-year fixed mortgage rate declined by 15 basis points to 4.25% as of Tuesday afternoon. The 30-year FRM hovered between 4.38% and 4.45% late last week, and peaked at 4.48% on Thursday.
According to the MBA application survey, the average contract rate for the 30-year conforming FRM (MBA defines this as a loan with a balance of $417,500 or under) for the survey period is 4.68%, unchanged from the previous week. Federal Housing Administration-insured loans had an average contract rate for the week of 4.38%, up one basis point from the previous week.
Jumbo 30-year FRMs saw the average contract rate fall by five basis points to 4.81%. The MBA said the rate for the 15-year FRM decreased by six basis points to 3.7%.
The share of adjustable-rate mortgages was 7% of the week’s loan applications and the average contract rate for the 5/1 ARM was down one basis point to 3.39%.
