Mortgage Applications Fall Again, Rates Still Hitting Record Lows

By Liz Clinger Updated on 7/5/2012

After the initial rush for government backed refinance, mortgage applications as a whole have fallen 6.7% over the last week.

According to the Mortgage Bankers Association, the refinance index overall showed a decline of 8% over the last week while HARP 2.0’s portion of refinance applications reached an incline to 24% over the 20% share just 3 weeks ago. Of all mortgage applications, refinance applications reached a slight decline to a 78% share, just 1% down from last week’s 79%.

The seasonally adjusted purchase index reached a very slight incline of 1% showing the demand in new home applications remains mostly unchanged.

Mortgage interest rates for the average contract 30-year fixed rate mortgages with a conforming loan balance fell 0.02%, reaching another record breaking low of 3.86% under last week’s average of 3.88%. 30-year fixed rate mortgages with a jumbo loan balance also declined 0.04% to reach 4.08% under last week’s average of 4.12%.

FHA backed 30-year fixed rate mortgage average interest rates also decreased from the previous week, reaching 3.69% under last week’s average of 3.71%, a 0.02% difference.

15-year fixed rate mortgage average interest rates decreased as well, also reaching record breaking numbers at 3.2% under last week’s 3.24%.

5/1 adjustable rate mortgages are down from the previous week 0.04% with a new average of 2.76% under last week’s 2.81%.