Even though there were continued declines in mortgage interest rates to new record-low levels, total loan application volume continued to fall, this time by 2.1% on a seasonally adjusted basis for the week ended July 6, according to the Mortgage Bankers Association. The calculation has been adjusted to take into account the Independence Day holiday.
The small bit of good news in the data are that the Purchase Index increased by 3% on a seasonally adjusted basis. When compared with the same week in 2010, this index was down by 3% on an unadjusted basis.
The Refinance Index was down 3% this week, while the refi share of apps fell to 77% from 78% in last week's survey.
New low interest rate low points were established for the fixed-rate mortgages tracked in the survey, as well as for the 5/1 year adjustable. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) fell by seven basis points from the previous week to 3.79%. The average contract interest rate for 30-year FHA-insured loans declined by six basis points to 3.63%.
The rate for 30-year FRMs with jumbo loan balances, fell by three basis points to 4.05%. The average contract interest rate for 15-year FRMs declined five basis points to 3.15%. The rate for the 5/1 ARM was 2.71%, down five basis points.
