Rising interest rates resulted in reduced refinance volume, and as a result overall mortgage application volume fell by 5.9% for the week ended June 17, according to the Mortgage Bankers Association.
A huge increase in activity during the week of June 10 was attributed by MBA to consumers looking to refinance, getting back into the marketplace. But, as rates rose for the most recent week, the Refinance Index declined by 7.2%. The seasonally adjusted Purchase Index was also affected, declining 2.8% from the previous week. Still, on an unadjusted basis, the Purchase Index is 4.4% higher than the same week in 2010.
The market share of refi applications fell to 69.2% from 70% one week prior. MBA tracks activity through its proprietary application index.
The average contract interest rate for 30-year fixed-rate mortgages rose 6 basis points to 4.57 % from 4.51%, with points decreasing to 0.91 from 1.04 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for the 15-year FRM was up 3 basis points, to 3.70% from 3.67%, while points fell to 1.05 from 1.06.
