Mortgage application volume took one of the largest jumps in over a year last week, increasing an impressive 15.6% on an adjusted basis compared with the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Without seasonal adjustment, volume for the week ended June 7 was up 26%.
Applications for refinances increased 28% compared with the previous week and were up 28% compared with the same week one year ago.
Applications for purchases increased 9% compared with the previous week but were down 12% compared with the same week one year ago.
“Mortgage rates were trending lower over the course of last week until a stronger than anticipated employment report resulted in a bounce back, with the weekly average for the 30-year fixed mortgage rate decreasing to 7.02 percent,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “Lower rates earlier in the week meant a strong increase in refinance activity, particularly for VA borrowers, who jumped on the chance to lower their rates. Overall refinance activity was more than 27 percent above one year ago.
“On a seasonally adjusted basis and compared to the holiday-adjusted level from the prior week, purchase activity also increased,” Fratantoni adds. “Multiple data sources are now indicating that home inventory levels, while still historically low, are up significantly from last year at this time. This is good news for many prospective homebuyers who have been frustrated by the lack of homes on the market.”
The refinance share of mortgage activity increased to 35.2% of total applications, up from 31.1% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.3% of total applications.
Photo: Scott Graham