Mortgage applications have decreased 1.7% from one week ago, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 30.
The Refinance Index decreased 2% from the previous week and was 3% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 2% from one week earlier. The unadjusted Purchase Index decreased 2% compared with the previous week and was 18% lower than the same week one year ago.
“Interest rates drifted lower globally last week, as markets assessed the latest concerns regarding the delta variant,” says Mike Fratantoni, MBA’s senior vice president and chief economist. “30-year mortgage rates dropped below 3 percent in our survey for the first time since this February, presenting an opportunity for many homeowners who have not yet refinanced to lower their rate and their payments. Refinance application volume slightly decreased, following an 11 percent jump last week. Purchase application volume decreased again, reflecting the ongoing lack of inventory that continues to drive rapid home-price appreciation across the country.”
The refinance share of mortgage activity increased to 67.6% of total applications from 67.5% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 3.4% of total applications.
The FHA share of total applications remained unchanged from 9% the week prior. The VA share of total applications increased to 9.9% from 9.7% the week prior. The USDA share of total applications remained unchanged from 0.5% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased to 2.97% from 3.01%, with points decreasing to 0.33 from 0.34 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) increased to 3.12% from 3.11%, with points increasing to 0.30 from 0.27 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.08% from 3.03%, with points decreasing to 0.29 from 0.35 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.