view in browser
Mortgage Applications Rise in MBA Weekly Survey

Robinson, Matt
Mortgage application activity improved after four consecutive weeks of declines, even as key interest rates reached yearly highs, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending June 7. 
    
The Market Composite Index increased by 5.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased by 16 percent compared to the previous week. This included an adjustment for the Memorial Day holiday.

The Refinance Index increased by 5 percent from the previous week. Despite this, refinancing are still 11 percent lower than two weeks prior and 36 percent lower than the recent peak at the beginning of May, when rates were 3.35 percent. The refinance share of mortgage activity increased to 69 percent of total applications from 68 percent the previous week. The Home Affordable Refinance Program share of refinance applications fell from 32 percent the prior week to 29 percent.

The seasonally adjusted Purchase Index increased by 5 percent from one week earlier. The unadjusted Purchase Index increased by 14 percent compared to the previous week and was 6 percent higher than the same week one year ago.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.15 percent, the highest rate since March 2012, from 4.07 percent, with points increasing to 0.48 from 0.35 (including the 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 $417,500) increased to 4.25 percent, the highest rate since May 2012, from 4.20 percent, with points increasing to 0.32 from 0.28 (including the 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 the FHA increased to 3.81 percent, the highest rate since April 2012, from 3.76 percent, with points decreasing to 0.26 from 0.32 (including the 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 3.32 percent, the highest rate since April 2012, from 3.23 percent, with points remaining unchanged at 0.38 (including the 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 2.78 percent, the highest rate since June 2012, from 2.76 percent, with points decreasing to 0.30 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The ARM share of activity increased to 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.