Mortgage Apps Up in MBA Weekly Survey as Purchase Apps, Refis Hold Steady
Mortgage applications increased from one week earlier as key interest rates showed little movement, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending May 20.
The Market Composite Index increased by 2.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased by 2 percent compared to the previous week.
The Refinance Index increased by 0.4 percent from the previous week. The refinance share of mortgage activity decreased to 53.7 percent of total applications from 54.6 percent the previous week.
The seasonally adjusted Purchase Index increased by 5 percent from one week earlier. The unadjusted Purchase Index increased by 4 percent compared to the previous week and was 17 percent higher than the same week one year ago.
MBA reported the average loan size for purchase applications reached a survey high at $307,700.
“Purchase applications got back on track last week, resuming the level of activity observed throughout most of April and May,” said MBA Vice President of Research and Economics Lynn Fisher. “The release of the Federal Open Market Committee minutes mid-week led markets to reassess the likelihood of a rate increase this summer, pushing the average 30 year fixed rate up three basis points over the week. The overall refinance index held firm, although government refinance applications fell slightly.”
MBA reported the FHA share of total applications increased to 12.7 percent from 12.5 percent the week prior. The VA share of total applications decreased to 11.5 percent from 12.1 percent the week prior. The USDA share of total applications remained unchanged from 0.7 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.85 percent from 3.82 percent, with points increasing to 0.37 from 0.34 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 3.82 percent from 3.74 percent, with points decreasing to 0.27 from 0.29 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by FHA increased to 3.70 percent from 3.63 percent, with points decreasing to 0.27 from 0.28 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.06 percent from 3.02 percent, with points increasing to 0.40 from 0.38 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 adjustable-rate mortgages increased to 3.09 percent from 2.94 percent, with points increasing to 0.31 from 0.30 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The ARM share of activity increased to 5.7 percent of total applications.
The survey covers more than 75 percent of all U.S. retail and consumer direct residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.
