Mortgage application volume increased 1.1% during the week ended May 9, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Mortgage rates were stable during the week: The average rate for a 30-year fixed-rate mortgage was 6.86%, up slightly from 6.84% the previous week.
Applications for refinances decreased 0.4% compared with the previous week but were up 44% compared with the same week one year ago.
Applications for purchases increased 2% compared with the previous week and were up 18% compared with the same week one year ago.
“Last week saw steadier mortgage rates, as the FOMC meeting played as predicted, and market movements led to a small two-basis point increase in the 30-year conforming rate to 6.86 percent,” explains Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “Refinance volume was little changed for the week, with a small increase in government refinances, and a decrease in conventional refinances. The news for the week was the growth in purchase applications, up 2.3 percent and almost 18 percent higher than last year’s pace. Despite the economic uncertainty, the increase in home inventory means there are additional properties to buy, unlike the last two years, and this supply is supporting more transactions.”
“There was a notable gain in government purchase applications, up almost 5 percent for the week and 40 percent on an annual basis,” he adds.
The refinance share of mortgage activity decreased to 36.4% of total applications, down from 37.1% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 7.4% of total applications.
Photo: Alison Pang