Refinance index jumps 20% as mortgage rates fall to February low

Mortgage applications increased 16.0 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending July 9, 2021. This week's results include an adjustment for the Fourth of July holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 16.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 7 percent compared with the previous week. The Refinance Index increased 20 percent from the previous week and was 29 percent lower than the same week one year ago. The seasonally adjusted Purchase Index increased 8 percent from one week earlier. The unadjusted Purchase Index decreased 13 percent compared with the previous week and was 29 percent lower than the same week one year ago.  

The refinance share of mortgage activity increased to 64.1 percent of total applications from 61.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 3.5 percent of total applications.

The FHA share of total applications decreased to 9.5 percent from 9.8 percent the week prior. The VA share of total applications decreased to 10.3 percent from 10.8 percent the week prior. The USDA share of total applications remained unchanged from 0.5 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased to 3.09 percent from 3.15 percent, with points decreasing to 0.37 from  0.38 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.  

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) decreased to 3.16 percent from 3.20 percent, with points decreasing to 0.27 from 0.28 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.  

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.15 percent from 3.17 percent, with points decreasing to 0.29 from 0.32 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.  

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.48 percent from 2.52 percent, with points increasing to 0.32 from 0.23 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.  

The average contract interest rate for 5/1 ARMs increased to 3.02 percent from 2.94 percent, with points decreasing to 0.32 from 0.34 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from last week.