The refinance index decreased 16% for the week ended June 28 from the previous week, according to the weekly survey covering more than three-quarters of all U.S. residential-mortgage applications. MBA also reported the seasonally adjusted purchasing index slipped 3% from a week earlier.
Interest rates have increased in recent weeks amid stronger economic data, curbing some individuals' appetite to buy a new home. Mike Fratantoni, MBA's vice president of research and economics, said fewer homeowners have an incentive to refinance at the current interest rates. Refinance-application volume dropped more than 15% last week.
The share of applications filed to refinance an existing mortgages decreased to 64%, the lowest level since May 2011, from the prior week's 67%. Adjustable-rate mortgages, or ARMs, increased to 8% of total applications, the highest level since July 2008. The Home Affordable Refinance Program share of refinance applications rose to 34% from 30% in the prior week.
The average rate on 30-year fixed-rate mortgages with conforming loan balances climbed to 4.58%, the highest rate since October 2011, from the prior week's 4.46%. Rates on similar mortgages with jumbo-loan balances rose to 4.68%, the highest rate since March 2012, from 4.52% a week earlier. The average rate on 30-year fixed-rate mortgages backed by the Federal Housing Administration increased to 4.27%, the highest rate since September 2011, from 4.2% a week earlier.
The average rate for 15-year fixed-rate mortgages climbed to 3.64%, the highest level since July 2011, from 3.55% a week earlier. The 5/1 ARM average rate rose to its highest level since July 2011, jumping to 3.33% from 3.06% a week earlier.
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