What stood out from the end of June data was the refinance index increasing 7% from the previous week and coming in 40% higher than the same week one year ago. The refinance share of mortgage activity increased to 40.1% of total applications from 38.4% the previous week.
“Mortgage rates were lower across all loan types last week, with the 30-year fixed rate declining to its lowest level since April at 6.79%. This decline prompted an increase in refinance applications, driven by a 10% increase in conventional applications and a 22% increase in VA refinance applications,” said Joel Kan, MBA’s vice president and deputy chief economist.
“As borrowers with larger loans tend to be more sensitive to rate changes, the average loan size for a refinance application increased to $313,700 after averaging less than $300,000 for the past six weeks. Purchase activity was essentially flat over the week, as overall uncertainty continues to hold homebuyers out of the market. However, purchase activity still remains 16% higher than last year’s pace.”
The seasonally adjusted purchase index increased 0.1% from one week earlier. The unadjusted purchase index increased 10% compared with the previous week and was 16% higher than the same week one year ago.
The adjustable-rate mortgage (ARM) share of activity increased to 7.8% of total applications.
By product, the FHA share of total applications decreased to 18.2% from 19.3% the week prior. The VA share of total applications increased to 12.0% from 11.7% the week prior and the USDA share of total applications remained unchanged at 0.5%.
Interest rates decreased across the board, with 30-year fixed-rate mortgages with conforming loan balances decreasing to 6.79% from 6.88%. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances decreased to 6.78% from 6.88%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.53% from 6.59%, while the average contract interest rate for 15-year fixed-rate mortgages decreased to 6.06% from 6.11%.
The average contract interest rate for 5/1 ARMs decreased to 5.99% from 6.16%.
