Applications Rebound in MBA Weekly Survey
Mortgage applications bounced back from one week earlier, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending June 15.
The Market Composite Index increased by 5.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased by 3 percent compared to the previous week.
The Refinance Index increased by 6 percent from the previous week. The refinance share of mortgage activity increased to 36.8 percent of total applications from 35.6 percent the previous week.
The seasonally adjusted Purchase Index increased by 4 percent from one week earlier. The unadjusted Purchase Index increased by 1 percent compared to the previous week and was 3 percent higher than the same week one year ago.
The FHA share of total applications decreased to 10.1 percent from 10.6 percent the week prior. The VA share of total applications decreased to 10.2 percent from 10.7 percent the week prior. The USDA share of total applications decreased to 0.7 percent from 0.8 percent the week prior.
“It was a mixed week for rates in MBA’s survey,” said MBA Associate Vice President of Industry Surveys and Forecasting Joel Kan. “Treasury yields finished the week slightly higher as a hawkish statement from the Federal Open Market Committee and market jitters caused by trade concerns and other geopolitical uncertainty offset each other.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) remained unchanged at 4.83 percent, with points decreasing to 0.48 from 0.53 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) increased to 4.79 percent from 4.74 percent, with points decreasing to 0.36 from 0.37 (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 decreased to 4.82 percent from 4.83 percent, with points increasing to 0.84 from 0.78 (including origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 4.27 percent from 4.23 percent, with points increasing to 0.53 from 0.51 (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 decreased to 4.06 percent from 4.11 percent, with points decreasing to 0.54 from 0.56 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The ARM share of activity increased to 7.0 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.
