RTTNews - Mortgage loan applications fell 3.5 percent for the week ending August 7 on a seasonally adjusted basis, most likely due to a jump in mortgage rates, according to data released by the Mortgage Bankers Association on Wednesday.
On an unadjusted basis, the index decreased 3.7 percent, though it is up 16.1 percent from its rate this same week last year.
The seasonally adjusted purchase index gained for the third time in the last four weeks, increasing 1.1 percent. However, an increase in the 30-year fixed mortgage rate caused the refinance index to drop 7.2 percent, a reversal of the 7.2 percent gain during the previous week.
The four week moving average for mortgages was down 0.7 percent. The same average for the Refinance Index is down two percent, but is up 0.8 percent for the seasonally adjusted Purchase Index-eight percent above its February low-an indication that home sales are in a gradual recovery after bottoming out earlier this year.
The MBA reported that refinance share of mortgage activity fell to 52.3 percent of total applications from the previous week, when the share was 54.2 percent. The Adjustable Rate Mortgage share of activity increased from 5.4 percent of applications the previous week to 5.8 percent this week.
In terms of interest rates, the survey reported that the average contract interest rate for 30-year mortgages increased to 5.38 percent from 5.17 percent the week before, and required an average payment of 1.18 points.
Average contract interest rates on 15-year mortgages and one-year ARMs increased from 4.60 percent to 4.71 percent, and from 6.67 percent to 6.71 percent, respectively. The 15-year rate required a repayment of 1.20 points, and the ARMs required a 0.08 point repayment.
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