The Market Composite Index, a measure of mortgage loan application volume, rose by 7.1% on a seasonally-adjusted basis for the week ending June 2, 2017, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications survey. (This week’s results include an adjustment for the Memorial Day holiday.) On an unadjusted basis, mortgage applications decreased by 15% over the previous week.
The Refinance Index increased by 3% over the same period. The seasonally-adjusted Purchase Index increased by 10%, up to its highest level since May 2010, while the unadjusted Purchase Index decreased by 14%.
The refinance share of mortgage activity decreased to 42.1% of total applications, down from 43.2% last week. The adjustable-rate mortgage (ARM) share decreased to 7.4%. The FHA share of total applications increased to 10.6% from 10.5%. The VA share increased to 11.1% from 10.8%. The USDA share remained unchanged at 0.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) fell to 4.14% from 4.17%, down to its lowest level since November 2016. Points for 80% loan-to-value (LTV) loans in this category increased to 0.34 from 0.32, and the effective rate decreased from last week. (All 80% LTV loan reports include the origination fee.)
For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract interest rate decreased to 4.08% from 4.11%, also the lowest rate since November 2016. Points for 80% LTV loans decreased to 0.21 from 0.30, and the effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.01% from 4.03%. Points for 80% LTV loans increased to 0.39 from 0.32, and the effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.39% from 3.42%, with points for 80% LTV loans increasing to 0.43 from 0.39. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 3.19% from 3.22%. Points for 80% LTV loans decreased to 0.27 from 0.33, and the effective rate decreased from last week.
