The total number of loan applications submitted the week ended July 19 declined by 1.2% on a seasonally adjusted basis from
The Refinance Index decreased 1% from the previous week. The MBA said it was driven by a 12% drop in government loan refi apps, while conventional refi app volume rose by 2%.
Purchase application volume is down 2% but on an unadjusted basis, they are 6% higher for the same week in 2012.
The share of refi apps remained at 63%.
HSH.com’s weekly mortgage radar found rates for the 30-year fixed-rate mortgage fell 11 basis points during the week ended Tuesday, to 4.46%.
Keith Gumbinger, vice president of HSH.com, commented that some potential borrowers are probably still catching their breath and adjusting their home purchase plans because of the sharp spike in rates during the past two months.
This second week in a row of declining rates isn't enough to cause any mass rush back into the market for consumers who were on the fence, but for those in the buying process, the dip is a chance to recapture some of the rise in costs the bump in rates fostered.
Gumbinger said, "It's not much, but for a borrower with a $200,000 loan, the difference in payment between last week and this week is about $13 per month. That's about four free’ gallons of gas each month at present prices, so there is some value to be had."
Zillow Mortgage Marketplace’s rate tracker shows the 30-year fixed mortgage rate declined by six basis points to 4.2% as of Tuesday afternoon. The 30-year FRM hovered between 4.18% and 4.28% early last week, leveling out near the current rate on Friday.
Erin Lantz, director of Zillow Mortgage Marketplace, said, “This coming week there are limited data releases or news events on the calendar, so we expect rates to remain essentially unchanged.”
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 4.58%, down 10 basis points from the previous week. Federal Housing Administration-insured loans had an average contract rate for the week of 4.28%, also down 10 basis points from the previous week.
Jumbo 30-year FRMs saw the average contract rate fall by 15 basis points to 4.66%. MBA said the rate for the 15-year FRM decreased by seven basis points to 3.63%.
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 nine basis points to 3.3%.
