Mortgage application volume increased 8.8 percent on a seasonally adjusted basis during the week ending June 25, the Mortgage Bankers Association said today.
The refinance index increased 12.6 percent from a week earlier to its highest level since the week ending May 22, 2009.
Meanwhile, the seasonally adjusted purchase index slipped 3.3 percent, while the unadjusted purchase index was off 3.6 percent from a week earlier and 36 percent lower than a year ago.
“Amid continuing financial market volatility, mortgage rates dropped again last week, with rates on 15-year loans reaching a record low for the MBA survey,” said Michael Fratantoni, MBA’s Vice President of Research and Economics, in a release. “Refinance applications jumped in response, but remain at about half the level seen in the spring of 2009”
“Purchase applications declined for the seventh time in the last eight weeks, keeping the purchase index near 13-year lows.”
That pushed the refinance share of mortgage activity to 76.8 percent of total applications, up from 73.8 percent a week earlier, the highest share since April 2009.
The popular 30-year fixed-rate mortgage averaged 4.67 percent during the week, down from 4.75 percent a week prior, while the 15-year fixed fell to 4.06 percent from 4.19 percent.
Finally, the out-of-favor one-year adjustable-rate mortgage remained unchanged at 7.05 percent.
Keep in mind that the interest rates above are good for conforming mortgages at 80 percent loan-to-value.
The MBA’s weekly survey covers more than half of all retail, residential loan applications, but does not factor out duplicate or rejected apps, which have surely risen since the mortgage crisis began.
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Tags: Refinance, Refinance Applications
Posted June 29, 2010 by Oliver Blake under Financial News