Mortgage application activity was mixed for the week ending June 25. Refinancing activity was higher in response to further declines in mortgage rates, while purchase activity continued to adjust to the expiration of the homebuyers tax credit.

The Mortgage Bankers Association (MBA) reported the Refinance Index rose 12.6% to ~3613, which is its highest level since May 2009. This occured as the average contract interest rate for 30-year fixed-rate mortgages fell to 4.67% from 4.75% (0.96 points).  As a percent of total application activity, refinancing share rose to 76.8% from 73.8%. Meanwhile, the Purchase Index slipped 3.3% to ~173. 

"Purchase applications declined for the seventh time in the last eight weeks, keeping the purchase index near 13-year lows," said Michael Fratantoni, MBA's vice president of research and economics.

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