Mortgage applications increased 7.2% from one week earlier as the lowest rates in three years have brought consumers in to refinance, according to the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ending July 8 found that the refinance index increased 11%
The market share of refi apps increased to 64% from 61.6% the previous week. At the same time, the seasonally adjusted purchase index was unchanged from one week earlier.
The adjustable-rate mortgage share of applications decreased to 5.2% from 5.6%, while the Federal Housing Administration share increased to 10% from 9.5%.
The VA share decreased to 12.1% from 12.8% and the USDA share remained unchanged at 0.6%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since May 2013, 3.6%, from 3.66%.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased six basis points to 3.61%.
The average contract interest rate for 30-year mortgages backed by the FHA decreased to 3.53% from 3.56%, while for 15-year fixed-rate mortgages, the average decreased to 2.88% from 2.96%.
The average contract interest rate for 5/1 ARMs decreased seven basis points to 2.78%.
