Mortgage Application Activity Falls Again, Rates Still Falling

By Liz Clinger Updated on 7/11/2012

According to the MBA, mortgage applications reached a 2.1% decline for the week ending Wednesday, July 7, even after adjusted results for the holiday on 4th of July.

The refinance portion of all mortgage applications decreased 3% totaling a 77% share of activity, giving the purchase index a 3% boost, indicating home purchase activity is picking up slightly while the initial refinance rush is slowing down.

Mortgage loan totals for purchases in June were down from May’s numbers, reaching an average of $240,897 under May’s average of $243,722. Refinance totals also decreased in June from May, reaching $218,619 under May’s average of $243,733.

Interest rates are still hitting record lows week over week. Contract interest rate averages for 30-year FRM’s with a conforming loan balance of $417,500 or under showed a decrease to reach 3.79% while jumbo 30-year fixed rate mortgage interest rate averages reached a 0.03% decline, averaging 4.05% under last week’s 4.08%.

FHA backed 30-year fixed rate mortgage averages fell to 3.63% under last week’s 3.69% and 15-year FHA backed fixed rate mortgages fell to 3.15% under last week’s 3.20%. 5/1 adjustable rate mortgage average interest rates reached 2.71% under last week’s average of 2.76%.

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