NEW YORK – Mortgage loan applications increased in the week ending July 16, as refinancings surged on a decline in interest rates, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
"As rates on 30- and 15-year fixed-rate mortgages declined to the lowest levels recorded in the survey, refinance activity increased last week. The refinance index is up almost 30 percent over the past 4 weeks, but is still well below the peak seen last spring," said Michael Fratantoni, MBA's Vice President of Research and Economics.
The Market Composite Index, a measure of mortgage loan application volume, increased 7.6% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased 19.5% compared with the previous week, which included the Independence Day holiday.
The Refinance Index increased 8.6% in the week and was at its highest level since the week ending May 15, 2009.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.59% from 4.69%, while a 15-year fixed-rate mortgages decreased to 4.05% from 4.12%.
