The share of refinance mortgage applications increased last week to its highest level since February as the number of all mortgage applications rose from the week before, according to the weekly mortgage applications survey released by the Mortgage Bankers Association.
For the week ending Aug. 11, there was a seasonally adjusted 0.1% increase in the market composite index, which measures the volume of mortgage loan applications. The index saw a 1% decline on an unadjusted basis. The purchase index fell 2% on a seasonally adjusted basis and 3% of an unadjusted basis, while the refinance index rose 2%.
Of total mortgage applications, refinances made up 47.8%, an increase from 46.7% the previous week. The share of adjustable-rate mortgages (ARM) was 6.6%, a decline from the week before. The shares of FHA applications and USDA applications were unchanged at 10.2% and 0.8%, respectively, while the VA share of all activity fell to 10.5% from 10.7%.
Week-over-week changes in average contract interest rates were mixed. The average rate for 30-year fixed-rate mortgages with conforming loan balances fell to 4.12%, its lowest level since November 2016, from 4.14%, while 30-year fixed-rate mortgages with jumbo loan balances saw its average rate fall to 4.04% from 4.07%.
The average rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.01% from 4.02%. The 15-year fixed-rate mortgage had its average rate unchanged at 3.41, and 5/1 ARMs saw its average rate climb to 3.34% from 3.31%.
The effective rates for 30-year fixed-rate mortgages with conforming loan balances and with jumbo loan balances as well as for 15-year fixed-rate mortgages declined from the previous week. The 30-year fixed-rate mortgages backed by the FHA saw its effective rate unchanged from the previous week, while the rate for 5/1 ARMs increased.
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