Mortgage applications rose by 9.3% from one week earlier on a seasonally adjusted basis for the week ending June 5, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. (The previous week’s results include an adjustment for the Memorial Day holiday.)
On an unadjusted basis, the Market Composite Index—a measure of mortgage loan application volume—rose by 20% from the previous week. The Refinance Index rose by 11% over the same period. The seasonally adjusted Purchase Index rose by 5% from one week earlier, while the unadjusted Purchase Index rose by 15% from the previous week.
The refinance share of mortgage activity rose to 61.3% of total applications, up from 59.5% the previous week. The adjustable-rate mortgage share of activity fell to 3.1% of applications. The FHA share rose to 11.5% from 11.2%, the VA share rose to 12.3% from 12%, and the USDA share fell to 0.6% from 0.7%.
“Fueled again by low mortgage rates, pent-up demand from earlier this spring, and states reopening across the country, purchase mortgage applications and refinances both increased. The recovery in the purchase market continues to gain steam, with the seasonally adjusted index rising to its highest level since January. Purchase activity increased for the eighth straight week and was a notable 13% higher than a year ago,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Refinances moved higher for the first time in nearly two months, with both conventional and government applications rising and the overall index coming in 80% above year-ago levels.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) rose to 3.38% from 3.37%. Points for 80% loan-to-value ratio loans remain unchanged at 0.30. (All 80% LTV loan reports include the origination fee.) The effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $510,400) rose to 3.7% from 3.66% the previous week. Points for 80% LTV loans fell to 0.26 from 0.30, and the effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell to 3.38% from 3.46%. Points for 80% LTV loans rose to 0.24 from 0.23, and the effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages fell to 2.83% from 2.85%. Points for 80% LTV loans fell to 0.26 from 0.27, and the effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs fell to 3.02% from 3.05%. Points for 80% LTV loans rose to 0.27 from 0.25, and the effective rate decreased from last week.
