Applications for refinancings accounted for 59.4 percent of all mortgage applications for the week ending June 5 — the lowest share for refinancings since November, the Mortgage Bankers Association said.
With interest rates on the rise, applications for refinancings were down 11.8 percent from the previous week, with purchase loans increasing by 1.1 percent on a seasonally adjusted basis.
Taken together, applications for refinancings and purchase loans were down 7.2 percent from the week before on a seasonally adjusted basis, but up 7.6 percent from a year ago on an unadjusted basis, the MBA said.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.57 percent from 5.25 percent, with points increasing to 1.09 from 1.02 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.1 percent from 4.8 percent, with points decreasing to 1.04 from 1.1 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year adjustable-rate mortgage (ARM) loans increased to 6.75 percent from 6.61 percent, with points decreasing to 0.1 from 0.15 (including the origination fee) for 80 percent LTV loans.
Applications for ARM loans accounted for 3.4 percent of all applications, up from 3 percent the previous week.
What’s your opinion? Leave your comments below or send a letter to the editor.