The latest Mortgage Bankers Association® Weekly Application Survey reveals rates for mortgages for home purchases dropped for all loan categories in the last week of July including 30-year fixed-rate loans with conforming and jumbo loans guaranteed by FHA (Federal Housing Administration) as well as 15-year fixed loans.
As a result of the drop, The Refinance Index saw a hike of 2 percent, while the Purchase Index remained flat from the previous week. MBA's chief economist, Michael Fratantoni told CNBC, "Although total purchase applications were little changed for the week, this resulted from a combination of a small increase for conventional purchase loans, and a decrease for government purchase loans." Mr. Fratantoni added, "We continue to see a decline in the average size of purchase loans, further indicating that entry-level buyers are beginning to return to the real estate market.”
Purchase Applications remain 18 percent higher than what was estimated last year, however, they have been unmoved over the past several weeks. Purchase Applications are considered a reliable source when predicting future home sales.
The Mortgage Bankers Association weekly survey began in 1990 and surveys 75 percent of all mortgage applications for residential properties. Read more on this here...