Industry News

Home loan apps decline

Adjustable mortgages gain market share, MBA finds

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Fewer borrowers chose to take out loans for home purchases and refinancings last week even as long-term mortgage rates ended a monthlong climb, the Mortgage Bankers Association reported today. The drop-off in activity pushed the market composite index -- a measure of mortgage application volume -- down 3.4 percent on a seasonally adjusted basis from the week before. Applications for refinancings declined 4.2 percent from the first week of June, and the index that tracks home purchases was down 3 percent. Borrowing costs on long-term loans were fairly calm in the latest survey, with the average contract interest rate for 30-year fixed-rate mortgages dipping to 6.6 percent from 6.61 percent a week earlier and the average rate on the 15-year fixed holding at 6.28 percent. Costs on the one-year ARM, however, jumped from 5.48 percent to 5.7 percent during the period, boosting the ARM share of total applications to 20.3 percent from 18.7 percent a week earlier. The refi share of activity hel...