Refinance orders rebounded last week from a holiday-related slowdown last week, but requisitions softened. The Mortgage Bankers Association (MBA) said the Composite Market Index, a measure of order volume, rose 1.1 percent on a seasonally adjusted basis compared to the previous week. On an unadjusted basis, the index increased by 27.0 percent compared to the previous week which was adjusted for Independence Day. The refinancing index increased by 7.0 percent from the previous week and decreased by 32.0 percent from the same week in 2022. Refinancing requests accounted for 28.4 percent of the total activity compared to 26.8 percent in the previous week. The seasonally adjusted Buy Index is down 1.0 percent on a weekly basis and is up 2 percent on an unadjusted basis. The index was 21 percent lower than the same week a year ago. Mortgage rates fell last week, as markets responded positively to incoming data showing that US inflation continues to ease. “Most rates in our survey are down, with the 30-year constant rate down to 6.87 percent,” said Joel Kahn, MBA vice president and deputy chief economist. Refinancing applications increased by more than 7 percent, but this activity accounted for only 28 percent of applications and was more than 30 percent behind last year’s pace. Despite lower rates last week, applications are down, as home buying activity remains stalled due to lower housing supply and rates still much higher than they were a year ago.” Other highlights from MSc’s weekly mortgage application survey Business Loan volumes increased last week for the first time since mid-May but the decline resumed last week.Total loan volumes fell from $380,200 to $372,900 and purchase loan volumes fell over $7,000 to $418,600. The FHA’s share of total applications increased to 13.6 percent from 13.3 percent while the VA’s share decreased to 12.1 percent from 12.6 percent USDA’s share of applications rose to 0.5 percent from 0.4 percent in the prior week Average price fell Interest on contracts compatible with 30-year fixed-rate mortgages fell to 6.87 percent from 7.07 percent, with points down to 0.66 from 0.74.The average 30-year jumbo FRM rate fell to 6.89 percent from 7.04 percent, with points increasing to 0.64 from 0.59. The 30-year FHA-backed FRM averaged 6.77 percent with 1.12 points, down from 6.86 percent with 1.23 points in the previous week. FRMs for fifteen years decreased to 6.36% from 6.42%, with the score falling to 0.72 from 1.22. The average interest rate on contracts for 5/1 adjustable rate mortgages rose to 6.27 percent from 6.24 percent, and points decreased to 0.91 from 1.42. ARM apps made up 6.3 percent of the total apps, down from 6.6 percent in the previous week.
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