Mortgage apps rise, despite higher rates
More borrowers applied for home loans for the week ending June 30, even as rates made the largest five-day jump since just after the presidential elections.
Total mortgage application volume was up 1.4 percent from the previous week, according to a Mortgage Bankers Association’s report.
Application volume was still down 26 percent from year-ago figures for the same week, when rates were lower.
According to the report, refinance share of mortgage activity decreased to 44.9 percent of total applications from 45.6 percent the previous week.
Purchase applications rose 3 percent for the same week and were 6 percent higher compared with the same week a year ago.
High prices and low inventory have plagued buyers in the last year and might be some of the reason for increased adjustable-rate mortgage activity for the week of June 30. The Adjustable-rate mortgages (ARMs) share of activity increased to 7.2 percent of total applications. ARMs offer a lower interest rate over fixed-rate mortgages.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $424,100 or less increased to its highest level in about two months, 4.20 percent, from 4.13 percent, with points decreasing to 0.31 from 0.32, including the origination fee, for 80 percent loan-to-value ratio loans.