Mortgage apps falter, interest rates continue ascent
WASHINGTON (7/2/15)--Mortgage application activity took a sizable step back for the week ending June 26, dropping 4.7% after a meager increase the prior week, according to the Mortgage Bankers Association’s weekly survey (Economy.com July 1).
Refinance activity accounted for most of the decline, falling 5.2%, but purchase applications also disappointed with a 4.1% drop.
“Mortgage application activity has been particularly volatile in recent weeks,” said Michael McGrane, Moody’s analyst (Economy.com). “However, on a four-week moving average basis, purchase activity is up 15% above year-ago levels.”
Purchase applications also sit 3% higher month-over-month, while the four-week moving average for refinance activity fell 9.8%, and sits 0.2% lower annually.
The contract rate for 30-year fixed-rate conforming mortgages climbed 7 basis points to 4.26%, which is 24 basis points higher than the prior month, but 2 basis points down annually.
The 30-year fixed-rate jumbo mortgage rate increased by 7 basis points to 4.21%, and the five-year adjustable-rate mortgage rate rose 5 basis points to 3.09%.