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Mortgage Applications Slide as Interest Rates Fall

Mortgage applications fell 2.1 percent from the week before, according to the ""Mortgage Bankers Association"":http://www.mbaa.org/ (MBA).

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The trade group found declines for applications amid new historic lows for mortgage rates. According to the MBA, average contract interest rates for home loans broke new records across the board.

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New lows for interest rates included the 30-year fixed-rate mortgage with conforming balances (3.79 percent), the 30-year loan with jumbo loan balances (4.05 percent), and the 15-year loan (3.15 percent). Five-year and one-year adjustable-rate mortgages likewise fell to a new low of 2.71 percent.

Mortgage application volume declined by some 22 percent on an unadjusted basis, according to the trade group. The Purchase Index reflected a 3 percent increase on a seasonally adjusted basis and 17 percent slump on an unadjusted basis.

The MBA saw declines for refinance activity, too. The Refinance Index slipped by 3 percent from the week before, while the refinance share of mortgage activity fell to 77 percent of total applications.

The average loan size for home purchases fell from $243,733 in May to $240,897 in June. The average refinance likewise slid from $226,576 to $218,619 in May.

The Pacific region once again saw the largest loan purchases and refinances at $361,788 and $319,977, respectively.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.
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