Mortgage application activity strengthened last week on a seasonally adjusted basis last week, getting a boost from higher purchase loan volumes.
According to the Mortgage Bankers Association [1] (MBA), mortgage applications increased a holiday-adjusted 1.9 percent [2] for the week ending July 4. The last time applications rose was early June, shortly after the Memorial Day holiday.
MBA's seasonally adjusted Purchase Index jumped 4 percent week-on-week, while the Refinance Index lifted a slight 0.4 percent. The disparate gains brought the share of refinance applications down to 52 percent of total volumes.
On an unadjusted basis, MBA's composite index fell 19 percent week-over-week, while the Purchase Index was down 17 percent and 10 percent lower than last year. The Refinance Index does not include a seasonal adjustment but is adjusted for holidays.
The upward nudge in application numbers accompanied a minor increase in interest rates.
According to MBA, the average contract rate for a 30-year fixed-rate mortgage last week was 4.32 percent, up from 4.28 percent, with points increase to 0.16 for 80 percent loan-to-value ratio loans.