Home loan application activity slipped modestly recently as both purchase and refinance need eased during the holiday-shortened duration. The Mortgage Bankers Association (MBA) reported a 2.2% decrease in total application volume on a seasonally changed basis for the week ending July 3, with results adjusted for the 4th of July vacation.
Purchase applications decreased 1% from the previous week on a seasonally changed basis however stayed 5% higher than the very same week one year ago, still more powerful year-over-year regardless of elevated borrowing costs.
Refinance activity deteriorated even more, with the Refinance Index falling 4 %from the previous week while remaining 8%above year-ago levels.
“Mortgage application volume was little bit changed during the week of the country’s 250th Self-reliance Day event, as the 30-year fixed rate increased a little to 6.58 percent,” stated Mike Fratantoni, MBA’s SVP and Chief Economist. “After changing for the Self-reliance Day holiday, federal government purchase volume increased modestly, led by a 5 percent gain in VA purchase applications, while conventional purchase activity decreased. Re-finance application volume was down 4 percent, as homeowners saw little temptation to act with rates still elevated.”
The refinance share of home mortgage activity decreased to 40.6% from 41.4%, while the adjustable-rate mortgage (ARM) share increased to 7.8% from 7.6%.
Government-backed application shares were blended. FHA share reduced to 16.4% from 16.9%, while VA share edged up to 13.0% from 12.9%. USDA share increased to 0.5% from 0.4%.
Home Loan Rate Summary:
- 30yr Fixed: 6.58% (from 6.57%)|Points: 0.64 (from 0.65)
- 15yr Fixed: 5.99% (from 6.00%)|Points: 0.71 (from 0.75)
- Jumbo 30yr: 6.50% (from 6.52%)|Points: 0.42 (from 0.38)
- FHA: 6.28% (from 6.27%)|Points: 0.79 (from 0.77)
- 5/1 ARM: 5.84% (from 5.79%)|Points: 0.94 (the same)