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Mortgage applications rose the final week of July

Posted on Thursday, August 6, 2015 at 9:26:14 AM

An index measuring mortgage application volume increased in the final week of July. 

Data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey indicated that its Market Composite Index rose 4.7 percent on a seasonally adjusted basis for the week ending July 31, 2015. On an unadjusted basis, it jumped 5 percent over the week prior. The index is a composite of the MBA's purchase and refinance indices.

The Refinance Index jumped 6 percent while the Purchase Index ticked up 3 percent on a seasonally adjusted basis. The Purchase Index also increased 3 percent on an unadjusted basis, and is 23 percent higher than it was one year ago. 

Lynn Fisher, the MBA's vice president of research and economics, explained in a press release that application volumes rose due to a depreciation in mortgage interest rates. The average contract interest rate for 30-year fixed-rate mortgages dropped to its lowest level since May. She also noted that refinance activity is at its highest level since the same month. 

The refinance share of all mortgage applications ticked up to 51.3 percent of total applications from 50.6 percent. 

Interest rates are set to remain at these low levels until September, at least, with many homebuyers cashing in now with residential financing with interest rates below 5 percent.