The Mortgage Bankers Assocation (MBA) released their Weekly Mortgage Applications survey today. Mortgage application volume for the week ending July 23, 2010 decreased by 4.4 percent on a seasonally adjusted basis from the previous week. On an unadjusted basis applications decreased by 4.2 percent from one week earlier.
Not only does the index measure the total volume of applications but also the amount of purchasing and refinancing applications. The refinance index went down by 5.9 percent on a seasonally adjusted basis from a week ago. Applications for purchases actually increased by 2 percent from a week earlier, marking the highest point the survey has seen since the end of June.
The decrease in refinancing can be attributed to an increase in the average contract interest rate . The mortgage rate for a 30 year fixed rate mortgage went up .1 percent from 4.59 percent to 4.69 percent, with points decreasing to .88. For 15 year fixed rate mortgages the interest rate increased from 4.05 percent to 4.12 percent with points decreasing to .83.
Many economists see the four week average as a better indicator of mortgage application volume. The four week moving average is up 1.6 percent for the seasonally adjusted index. The four week average for refinancing is up 2 percent while purchases remain flat
To speak with one of our licensed mortgage professionals call 877-868-2503 to learn about all of our mortgage products and our low current mortgage rates.
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