The Mortgage Bankers Association (MBA) reported an uptick in mortgage application volume during the week ending July 7. The seasonally adjusted MBA Composite Market Index rose 0.9 percent on a seasonally adjusted basis compared to a week earlier, though it required additionally adjusted accounting for the Independence Day holiday to push it into positive territory. On an unadjusted basis, the index decreased by 19 percent compared to the previous week. The refinancing index is down 1.0 percent from the previous week and down 39 percent from the same week a year ago. The share of mortgage refinancing activity fell to 26.8 percent of total applications from 27.4 percent. The seasonally adjusted Purchasing Index rose 2.0 percent from the previous week but fell 19 percent before adjustment. Orders were 26 percent lower than their level in the same week in 2022. “Incoming economic data continues to send mixed signals about the economy,” said Joel Kahn, MBA Vice President and Deputy Chief Economist. [left] Treasury yields were higher last week as markets anticipate that the Federal Reserve will need to keep interest rates higher for longer to slow inflation. All mortgage rates in our survey followed suit, with the 30-year fixed rate rising to 7.07 percent, the highest level since November 2022. The jumbo rate also rose to 7.04 percent, a record for the jumbo chain, which goes all the way back to 2011. Kan added, “The rise in purchasing activity was driven by increases in both FHA and VA purchasing applications. The refinancing index has fallen to its lowest level since early June, as interest rate/term and cash refinancing demand remains very low with mortgage rates over 7 percent.” Further highlights from the weekly survey of mortgage applications in MSc Loan Volume Business, which had been declining for five consecutive weeks, was up slightly last week.Average volume was $380,200 compared to $378,800 while purchase loans grew by about $2,500 to $426,100. The FHA share of total applications increased to 13.3 percent from 13.0 percent The VA share increased to 12.6 percent from 11.7 percent USDA loan applications accounted for 0.4 percent of the total, unchanged from the prior week The rate was 7.07 percent To match 30-year fixed-rate mortgages 22 basis points higher than the previous week and points rose to 0.74 from 0.65 30-year jumbo FRM rose 9 basis points weekly Points fell to 0.59 from 0.64 Average rate was The interest on an FHA loan is 6.86 percent with 1.23 points. Compared with 6.68 percent in the previous week, at 0.98 points. The fifteen-year average for FRMs was 6.42 percent with 1.22 points, up from 6.30 percent with 0.91 points. The average interest rate on contracts for adjustable rate 5/1 mortgages rose to 6.24 percent from 6.00 percent, with points increasing to 1.42 from 1.23. ARM’s share of the activity was 6.6 percent, up from 6.2 percent in the previous week.
Source link
