On an unadjusted basis, the composite index decreased by 2% week-over-week. The seasonally adjusted purchase index dropped 1% compared to the week ended May 15. The unadjusted purchase index was unchanged for the week, and remained 14% higher year-over-year.
The MBA’s refinance index decreased 4% week-over-week, and the percentage of all new applications that were seeking refinancing fell from 52% to 51%.
Refinancings rose to as much as 75% of all mortgage loans made when interest rates fell below about 3.6% on the 30-year fixed loans. Unless rates reach that level again, it is highly unlikely that refinancing will regain a significant portion of the mortgage loan market.
Adjustable rate mortgage loans accounted for 6.4% of all applications, unchanged from the prior week.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.04% to 4.07%. The rate for a jumbo 30-year fixed-rate mortgage increased from 4.04% to 4.06%. The average interest rate for a 15-year fixed-rate mortgage rose from 3.26% to 3.29%.
The contract interest rate for a 5/1 adjustable rate mortgage loan increased from 2.99% to 3.04%. Rates on a 30-year FHA-backed fixed rate loan rose from 3.80% to 3.83%.
ALSO READ: 10 Stocks to Own for the Next Decade
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.