Mortgage Loan Rates Stifling Applications
The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a drop of 4.6% in the group’s seasonally adjusted composite index, following a decline of 4.7% for the previous week. Mortgage loan rates increased across the board last week.
The seasonally adjusted purchase index increased by 1% from the last report. On an unadjusted basis, the composite index again fell 5% week-over-week. The unadjusted purchase index decreased by 0.4% for the week, and is up about 5% year-over-year.
The MBA’s refinance index fell 8% after dropping 4% in the previous week.
The share of refinancings fell a point to 62%. Adjustable rate mortgage loans account for 6% of all applications, up slightly from the prior week.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.56% to 4.68%. The rate for a jumbo 30-year fixed-rate mortgage rose from 4.57% to 4.74%. The average interest rate for a 15-year fixed-rate mortgage rose from 3.6% to 3.71%.
The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.36% to 3.44%.
Refinancings slipped again to a two-year low as interest rates bounced higher after falling last week, but purchase applications remain higher than they were a year ago.
Later today we will hear from the National Association of Realtors with its report on existing home sales. The consensus estimate calls for a seasonally adjusted annual rate in July of 5.13 million, up about 50,000 from June levels.