Mortgage application volume surged 12.5% during the week ended June 6, despite a slight increase in rates, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Most of the increase was attributable to an increase in applications for refinances, which were up 16% compared with the previous week and were up 28% compared with the same week one year ago.
Applications for purchases increased 10% compared with the previous week and were up 20% compared with the same week one year ago.
“Coming out of the Memorial Day holiday, mortgage applications increased to the highest level in over a month, driven by growth in both purchase and refinance applications,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Treasury rates saw some movement during the week, which resulted in additional opportunities for borrowers.”
“The rate for 15-year fixed rate loans and FHA loans saw declines last week, while the 30-year fixed rate was largely unchanged,” Kan says. “Purchase applications were 20 percent ahead of last year’s pace, continuing to show strength compared to a year ago. Despite ongoing uncertainty surrounding the economy, homebuyers seem to be taking advantage of loosening housing inventory in certain markets.”
The refinance share of mortgage activity increased to 36.7% of total applications, up from 35.2% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 7.2% of total applications.
Photo: Romain Dancre