7.1 Percent Decline In Mortgage Applications

By Liz Clinger Updated on 6/27/2012

For the week ending June 22, 2012 mortgage application volume decreased 7.1% according to the Mortgage Bankers Association.

With the high demand for refinance on government loans more than doubling a week prior, the MBA indicated that the cool in activity is because of the new premiums on streamline refinances through FHA, which borrowers are waiting to take advantage of to lower their premiums.

The Mortgage Brokers Association’s refinance index declined 8% on a seasonally adjusted basis, the purchase index also decreasing 1% from the prior week. Of the total volume of mortgage applications, refinance activity only decreased 1% to reach 79% of all mortgage applications from the 80% the week prior.

Average mortgage interest rates for 30-year FRM with conforming loan balances showed a slight increase, reaching 3.88% over 3.87% the week prior, and 30-year FRM’s with jumbo loan balances also had an increase in average interest rate, reaching 4.12% over the previous week’s 4.06%.

FHA Backed 30-year fixed rate mortgage average interest rates decreased, reaching 3.71% from the previous week’s 3.72% and 15-year fixed rate mortgage average contract interest rate reached 3.24%, also decreasing from the previous week’s 3.25%. 5/1 Adjustable rate mortgages average interest rate reached 2.81%, an increase over the previous week’s 2.75%.