Application Activity Falls for Week of the Brexit Vote

Mortgage application activity decreased 2.6% from one week earlier, according to data from the Mortgage Bankers Association.

The MBA's Weekly Mortgage Applications Survey for the week ending June 24 found that the refinance index decreased 2% from the previous week. Meanwhile, the market share of refi apps increased to 58.1% from 57.7%.

At the same time, the seasonally adjusted purchase index decreased 3% from one week earlier.

Because the survey period covered just the day after the Brexit vote, it might be too soon to judge the effect on application activity.

However, "We expect volatility to continue as the consequences of the vote are sorted out this week," said Erin Lantz, Zillow's vice president of mortgages, in a separate press release.

The adjustable-rate mortgage share increased to 5.9% of total applications, while the Federal Housing Administration share decreased to 10.6% from 11.7%.

Veterans Affairs applications increased to 12.2% of the week's total from 11.1% and the USDA share increased one basis point to 0.7%.

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, 3.75%, from 3.76%.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased four basis points to 3.74%.

The average contract interest rate for the 30-year backed by the FHA remained unchanged at 3.61%, while for 15-year fixed-rate mortgages, the average decreased 2 basis points to 3.02%.

The average rate for 5/1 ARMs decreased to 2.88% from 2.92%.