Mortgage applications fell by 4.6% last week, according to the Mortgage Bankers Association.
When compared to one year ago, mortgage applications are down 31.3%. The purchase index has declined 6.2%, to 19% lower than last year at this time. The refinance index fell 1.6% last week, 46% lower than last year.
The decline in purchase applications has been steeper than the drop in U.S. home sales. New-home sales have fallen by 6% for the year. Existing home sales are down by 7%.
Refinancings made up 35% of total applications for last week, only up slightly from 34% the week earlier. Compared to the refinancing boom of 2003 when refinancings accounted for over 80% of applications, the refinancing market is down.
Adjustable-loans made up 29% of total applications.
Mortgage rates decreased to a four-week low last week. The average rate on a 30-year fixed-rate mortgage was 6.73%, down from 6.81%. The 15-year fixed-rate averaged 6.38%, down from 6.40 the week prior.
Adjustable-rate mortgages also saw declining interest rates. A one-year ARM fell to 6.28%, down from 6.41% the week prior.
The MBA data was released after an industry survey showed that the confidence of U.S. home builders fell in July to a 14-year low. Home builder confidence dropped three points to 39 for July, according to the National Association of Home Builders on Tuesday.
Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!
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