After surging 14.2% the previous week, mortgage application volume increased 7.2% on an adjusted basis during the week ended July 8, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
Driving the increase was an 11% jump in applications for refinances, which was driven by a decrease in mortgage interest rates resulting from the fallout of the Brexit decision. Applications for purchases were flat compared with the previous week.
The results include an adjustment for the Fourth of July holiday.
On an unadjusted basis, application volume decreased 14% compared with the previous week. Applications for purchases decreased 20% on an unadjusted basis and decreased 5% compared with the same week one year earlier.
The refinance share of mortgage activity increased to 64.0% of total applications from 61.6% the previous week.
The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.60%, down from 3.66% the previous week, according to the MBA’s data.
The average rate for a jumbo 30-year FRM was 3.61%, down from 3.67%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.53%, down from 3.56%.
The average rate for a 15-year FRM was 2.88%, down from 2.96%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.78%, down from 2.85%.
The ARM share of activity decreased to 5.2% of total applications.
All rates are based on closings.
Looking at application volume by government loan type, applications for mortgages backed by the FHA represented about 10.0% of all applications – up from 9.5% the week prior. The Veterans Affairs share of total applications was 12.1%, down from 12.8%, and the U.S. Department of Agriculture share remained unchanged at 0.6%.