Mortgage Applications, Interest Rates Rise

The number of people taking out home loans and refinancing existing ones rose again in the week ended July 17, even as interest rates climbed, according to a weekly survey of the Mortgage Bankers Association.

The MBA’s Market Composite Index, which measures loan application volume, rose 2.8 percent, week-over-week, on a seasonally adjusted basis.

The Refinance Index was up 4 percent from the previous week.

The adjustable-rate mortgage (ARM) share of activity decreased to 4.8 percent from 5 percent of total applications from the previous week.

The average interest rate for 30-year, fixed-rate mortgages increased to 5.31 percent from 5.05 percent, with points increasing to 1.18 from 1.12.

The average interest rate for 15-year, fixed-rate mortgages increased to 4.8 percent from 4.59 percent, with points decreasing to 1.03 from 1.07.

The average interest rate for one-year ARMs increased to 6.5 percent from 6.47 percent, with points remaining unchanged at 0.11.