Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

Mortgage applications rise slightly after weeks of falling

Mortgage applications improved this week, but not enough to have gained any lost ground. There is a silver lining, however…

mortgage applications

mortgage rates

Mortgage applications stagnant

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 2, mortgage applications rose 0.2 percent in volume from the week prior, after seven consecutive weeks of volume falling. While an increase is a positive and welcome sign, it is so slight that it is not quite icing on any cake.

Total mortgage loan application volume on an unadjusted basis was actually unchanged compared to the previous week.

The Refinance Index measuring the refinance portion of mortgage applications was also unchanged while the Purchase Index improved 1.0 percent from the previous week on a seasionally adjusted basis as well as an unadjusted basis. Purchase applications have been the sign of hope for the industry, and while down in recent weeks, it is 8.0 percent higher than this same week in 2012.

The refinance share of mortgage activity was unchanged at 63 percent of total applications from previous week after hovering near 80 percent for most of 2012, marking a slowdown in refis. The adjustable-rate mortgage (ARM) share of activity remained constant at 6.0 percent of total applications. The HARP share of refinance applications decreased to 36 percent from 37 percent the week prior.

Advertisement. Scroll to continue reading.

Average contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.61 percent from 4.58 percent, with points increasing to 0.42 from 0.38 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) was unchanged at 4.64 percent, with points decreasing to 0.34 from 0.39 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.33 percent from 4.30 percent, with points decreasing to 0.26 from 0.31 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.66 percent from 3.67 percent, with points increasing to 0.43 from 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs was unchanged at 3.39 percent, with points increasing to 0.37 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

Click to comment

Leave a Reply

Your email address will not be published.

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Economic News

(BUSINESS NEWS) Ben Carson's initial appointment to HUD was controversial given his lack of experience in housing, but what is the pulse now?

Housing News

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as...

Housing News

(Housing News) If you own a home or are thinking of buying, you should know the factors that give you an advantage with your...

Housing News

(Housing) Realtors are tasked with being up to date on endless information, and attending the annual REALTORS Conference and Expo is a fast way...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.