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US sees surge in mortgage applications

Property Here - Thursday, July 18, 2013

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The overall number of housing loan applications filed in the US soared 22 percent last week compared to the previous week, according to the Mortgage Bankers Association's weekly survey, which covers more than 75 percent of all residential loan applications in the country.

However, the market composite index slid by 2.6 percent on a seasonally-adjusted basis, which included an adjustment for the Independence Day holiday. At the same time, the refinance index fell 4.2 percent, while the seasonally adjusted purchasing index edged up by one percent.

Refinancing of existing loans accounted for 63 percent of all mortgage applications, down from 64 percent from the previous week, or the weakest level since April 2011. On the other hand, Adjustable-rate mortgages (ARMs) comprised 7.2 percent of the total applications, while refinances under the Home Affordable Refinance Program (HARP) made up 34 percent of all applications, down from 35 previously.

The average rate for 30-year fixed loans with conforming balances remains the same at 4.68 percent, while the average rate for mortgages with jumbo balances fell to 4.81 percent from 4.86 percent a week earlier.

The rate on the 30-year fixed loan backed by the Federal Housing Administration (FHA) rose to 4.38 percent from 4.37 percent, the average rate for 15-year fixed mortgages declined to 3.7 percent from 3.76 percent, while the 5/1 ARM average fell to 3.39 percent from 3.4 percent previously.