For the second consecutive week, mortgage application volume declined, this time by 2.7% for the week ended June 24, according to the Mortgage Bankers Association. The drop in application volume occurred in spite of the fact interest rates for the 30-year and 15-year fixed-rate loans were at their lowest level since last November.
The Refinance Index declined by 2.6%, while the seasonally adjusted Purchase Index declined 3% from the previous week. Still, on an unadjusted basis, the Purchase Index is 4.5% higher than the same week in 2010.
The market share of refi applications increased slightly to 69.5% from 69.2% one week prior. MBA tracks activity through its proprietary application index.
The average contract interest rate for 30-year fixed-rate mortgages declined 11 basis points to 4.46% from 4.57%, with points increasing to 1.19 from 0.91 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for the 15-year FRM was down 6 basis points, to 3.64% from 3.7%, while points rose to 1.11 from 1.05.
