Mortgage Apps Drop Four Percent From Last Week
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Mortgage Apps Drop Four Percent From Last Week

July 10, 2013

Mortgage applications decreased four percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 5, 2013. This week’s results included an adjustment for the July 4th holiday. The Market Composite Index, a measure of mortgage loan application volume, decreased four percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 23 percent compared with the previous week. The Refinance Index decreased four percent from the previous week. The seasonally adjusted Purchase Index decreased three percent from one week earlier. The unadjusted Purchase Index decreased 23 percent compared with the previous week and was five percent higher than the same week one year ago.
The refinance share of mortgage activity decreased to 64 percent of total applications. The adjustable-rate mortgage (ARM) share of activity decreased to seven percent of total applications. The HARP share of refinance applications rose from 34 percent the prior week to 35 percent.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.68 percent, the highest rate since July 2011, from 4.58 percent, with points increasing to 0.46 from 0.43 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 4.86 percent, the highest rate since July 2011, from 4.68 percent, with points decreasing to 0.37 from 0.38 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.37 percent, the highest rate since September 2011, from 4.27 percent, with points decreasing to 0.39 from 0.44 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.76 percent, the highest rate since July 2011, from 3.64 percent, with points decreasing to 0.41 from 0.44 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs increased to 3.40 percent, the highest rate since May 2011, from 3.33 percent, with points increasing to 0.54 from 0.31 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.

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