For the week ending June 9, mortgage applications increased 2.8% relative to the week ending June 2, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
The Market Composite Index, a measure of mortgage loan application volume, increased 2.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased 27% compared with the previous week. The Refinance Index increased 9% from the previous week to the highest level since November 2016. The seasonally adjusted Purchase Index decreased 3% from one week earlier. The unadjusted Purchase Index increased 19% compared with the previous week and increased 8% from the same week one year ago.
The refinance share of mortgage activity increased to 45.4% of total applications from 42.1% the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged, at 7.4% of total applications. The average loan size for refinance applications reached the highest level since September 2016, at $274,700.
The Federal Housing Administration (FHA) share of total applications increased to 11.2% from 10.6% the week prior. The Veterans Affairs share of total applications remained unchanged, at 11.1%, from the week prior. The U.S. Department of Agriculture share of total applications remained unchanged, at 0.8%, from the week prior.
The average contract interest rate for 30-year, fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) increased to 4.13% from 4.10%, with points increasing to 0.35 from 0.34 (including the origination fee) for 80% loan-to-value (LTV) ratio loans. The effective rate remained unchanged from last week.
The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $424,100) decreased to 4.06% from 4.08%, with points increasing to 0.24 from 0.21 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year FRMs backed by the FHA decreased to 4% from 4.01%, with points decreasing to 0.29 from 0.39 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year FRMs decreased to 3.37% from 3.39%, with points decreasing to 0.34 from 0.43 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 3.26% from 3.19%, with points decreasing to 0.20 from 0.27 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.