Total mortgage applications increased a scant 0.2% on a seasonally adjusted basis for the week ending July 27 with refinancings reaching a level not seen since January.
According to figures compiled by the Mortgage Bankers Association, refi applications accounted for 81% of all new business for the week.
Meanwhile, consumers continue to shun ARM products which accounted for just 4.1% of applications.
The MBA’s Refinance Index increased 0.8% for the week. The trade group noted a 6% drop in applications for government-insured refis. On the other hand, conventional refi activity increased by almost 2%.
The average contract rate for a 30-year fixed-rate mortgage with conforming loan balances ($417,500 or less) rose by one basis point from the previous week to 3.75%. The average contract rate for 30-year FHA-insured loans remained for a second week at its all-time low of 3.52%.
The rate for 30-year FRMs with jumbo loan balances climbed back above the 4% mark, increasing by two basis points to 4.01%. The average contract interest rate for 15-year FRMs increased two basis points to 3.09%.
