Mortgage applications down as rates trend higher


Mortgage applications down as rates trend higher

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There was a 7.4% decrease in mortgage applications in the week ending July 7th while rates continued their upward trend.

Figures from the Mortgage Bankers’ Association shows that on an unadjusted basis, the mortgage applications index was down 26% from a week earlier (7.4% adjusted).

MBA’s Refinance Index decreased 13% to the lowest level since January 2017. The seasonally adjusted Purchase Index decreased 3% and decreased 22 percent on an unadjusted basis.

Freddie Mac’s data shows that mortgage rates were higher last week and have continued that trend for the week ending July 13th.

An average 30-year FRM with an average 0.5 point was up to 4.03% from 3.96% a week earlier. A 15-year FRM with average 0.5 point was up to an average 3.29% from 3.22%; and a 5-year ARM with an average 0.5 point averaged 3.28%, up from 3.21% a week earlier.

“After fully absorbing the sharp increases in Treasury yields over the past couple of weeks, the 30-year mortgage rate has cleared the psychologically important 4 percent mark for the first time since May,” said Sean Becketti, Freddie Mac’s chief economist.

Meanwhile, Bankrate.com’s figures show an easing of 30-year mortgage rates, which may be a ‘breather’ rather than a new trend.

The benchmark 30-year fixed mortgage rate slipped to 4.13% an average of 0.28 discount and origination points. A 15-year fixed rate mortgage was up to 3.33% from 3.37% last week (avg. points: 0.28) and a 5/1 ARM was up to 3.54% from 3.58% last week (avg. points: 0.33).

More market update:

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