The total home loan market saw applications decline 5.9 percent in the week ending June 17, as far fewer Americans attempted to obtain refinances for their existing loans, according to the latest weekly statistics from the Mortgage Bankers Association. This was caused largely by a 7.2 percent decline in the number of refinance applications filed, while new purchase applications dropped 2.8 percent. However, the number of purchases was still 4.4 percent higher than it was in the same week last year.
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Overall, the average interest rate for a 30-year fixed-rate mortgage rose to 4.57 percent, up from the 4.51 percent observed in the previous week, the report said. Meanwhile, rates for 15-year fixed-rate loans jumped to 3.7 percent from the previous period’s 3.67 percent. Overall, fixed-rate mortgages made up 94.1 percent of all loans sought by consumers, up from 93.9 percent in the previous week.
In addition, the refinance share of the mortgage market shrank to 69.2 percent, down from the previous week’s 70 percent, the report said.
Consumers often seek to refinance their existing home loans when mortgage rates are low, as it will typically allow them to save on their monthly payments.