Its seasonally adjusted index of mortgage application activity for the week ended June 30 increased 5.9 percent to 561.0 from the previous week's 529.6. This was according to the Mortgage Bankers Association. While mortgage rates are linked to long-term U.S. Treasury yields, higher short-term rates lead investors to recalibrate their long-term rate expectations.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.80 percent, down 0.06 percentage point from the previous week, which was its highest since April 12, 2002 when it reached 6.92 percent. The MBA's seasonally adjusted purchase mortgage index rose 6.5 percent to 414.2.

The group's seasonally adjusted index of refinancing applications increased 5.0 percent to 1,423.9. The refinance share of applications decreased to 35.0 percent from 35.3 percent the previous week. Fixed 15-year mortgage rates averaged 6.41 percent, down 6.49 percent the previous week. Rates on one-year adjustable-rate mortgages (ARMs) increased to 6.39 percent from 6.36 percent.

The ARM share of activity increased to 29.5 percent of total applications from 29.1 percent the previous week. Respondents include mortgage bankers, commercial banks and thrifts.

By M. Sese
http://realestatepress.org