June 28, 2012 (Chris Moore)

Mortgage applications fell again last week as the pace of FHA refinances slowed considerably from the previous week and a decrease in purchase applications also contributed to the decline according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 22nd, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, fell a seasonally adjusted 7.1 percent from the previous week.

On an unadjusted basis, the Index decreased by the same amount from the previous week.

Purchase Applications:

The seasonally adjusted Purchase Index fell one percent from the previous week, adding to its nine percent decline the week before.

The unadjusted Purchase Index fell another two percent from the previous week after also suffering a nine percent decline the week before and was almost three percent lower than the same week a year ago.

Refinance Applications:

The Refinance Index decreased eight percent from the previous week. The refinance share of mortgage activity fell to 79 percent of total applications from 81 percent the previous week.

The drop in refinance volume was attributed to a decline in applications for government loans which had doubled the prior week.

Mortgage Interest Rates:

*Record Survey Low

The adjustable-rate mortgage (ARM) share of activity remained at about four percent of total applications.

Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate

Sources:
Mortgage Bankers Association