Demand up for government mortgage loans

Government mortgage loan application volume rose last week as already-low interest rates fell further still, according to the latest data from the Mortgage Bankers Association. In their third straight weekly increase, purchase applications rose 1.5 percent for the week that ended July 30, driven upwards by government purchase applications, which increased by 3.4 percent from the week before. Non-government purchase applications remained flat. Meanwhile, refinance applications rose 1.3 percent last week, maintaining their 78 percent market share of mortgage activity. Overall, mortgage applications nationwide were up by 1.3 percent, according to the survey. A 4.6 percent average contract interest rate was recorded for the 30-year mortgage, down from 4.69 percent the week before, while the 15-year mortgage saw a decrease in its interest rate to 4.03 percent — its lowest ever in the history of the MBA survey — from 4.12 percent a week ago. TRD