Mortgage applications nosedived during the week ending June 26 as purchase applications gobbled up the majority share, the Mortgage Bankers Association reported today.
Home loan application volume was off 18.9 percent on a seasonally adjusted basis (-18.5 percent unadjusted) compared to one week earlier, and off 7.4 percent compared with the same week a year ago.
Refinances plunged 30 percent to the lowest point since November 2008, while purchases slipped just 4.5 percent.
The refinance share of mortgage activity fell to just 46.4 percent of total applications, down from 54 percent a week earlier.
I don’t know the last time purchases outweighed refinance applications, but it’s had to have been a while.
Meanwhile, interest rates saw some improvement, but apparently not enough to keep the refinance boom alive.
The 30-year fixed averaged 5.34 percent, down from 5.44 percent, while the 15-year fixed decreased to 4.81 percent from 4.93 percent.
The one-year ARM dipped two basis points to 6.52 percent and the adjustable-rate mortgage share of applications increased to 4.3 percent from 4.1 percent.
The MBA’s weekly survey, conducted since 1990, covers roughly half of all retail residential loan applications, but does not take into account multiple or declined apps.
My first thought that comes to mind is what will happen to all those employees hired on to handle the influx of mortgage applications?
That’s now looking to be very temporary employment.
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