Mortgage applications were on the rise again, according to data from Mortgage Bankers Association (MBA) covering the week ending July 12.
The Market Composite Index, the MBA’s measure of mortgage loan application volume, increased 3.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index soared by 30% compared with the previous week.
The seasonally adjusted Purchase Index dipped by 3% from one week earlier while the unadjusted index increased 22% – the latter was also 14% lower than the same week one year ago.
The Refinance Index increased 15% from the previous week and was 37% higher than the same week one year ago. The refinance share of mortgage activity inched up to 38.8% of total applications from 34.9% the previous week.
Among the federal programs, the FHA share of total applications increased to 13.5% from 12.5% the week prior while the VA share increased to 15.2% from 13.7% and the USDA share remained unchanged at 0.4% from the week prior.
“Application activity was up 4%, driven by a 15% jump in refinances to the highest level since August,” said Joel Kan, MBA’s vice president and deputy chief economist. “While FHA and VA refinance applications accounted for a significant share of the increase, these are likely recently originated loans with even higher than current offered rates. Even with last week’s rate decline, purchase applications continue to lag, down 14% compared to last year’s pace.”
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