MBA: Mortgage Purchase Applications See an Upswing

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According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 29, applications decreased 3.9% from one week earlier, while the Refinance Index decreased 9% from the previous week.

The seasonally adjusted Purchase Index increased 5% from one week earlier.

“In contrast to the upswing in purchase activity, refinance applications fell for the seventh consecutive week – even as the 30-year fixed rate hit another MBA survey-low of 3.37 percent,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “After reaching a peak of 76 percent earlier this year, refinances now account for less than 60 percent of activity, and the index is now at its lowest level since February 21.”

The refinance share of mortgage activity decreased to 59.5 percent of total applications from 62.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 3.5 percent of total applications.

The FHA share of total applications remained unchanged from 11.2 percent the week prior. The VA share of total applications decreased to 12.0 percent from 12.4 percent the week prior. The USDA share of total applications increased to 0.7 percent from 0.6 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to 3.37 percent from 3.42 percent, with points decreasing to 0.30 from 0.33 (including the origination fee) for 80 percent loan-to-value ratio (LTV) 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 $510,400) decreased to 3.66 percent from 3.71 percent, with points increasing to 0.30 from 0.29 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.46 percent from 3.41 percent, with points decreasing to 0.23 from 0.30 (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 decreased to 2.85 percent from 2.87 percent, with points decreasing to 0.27 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 3.05 percent from 3.08 percent, with points increasing to 0.25 from 0.01 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

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