Mortgage applications increased 1.1 percent from one week earlier, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending May 20, 2011. The Market Composite Index, a measure of mortgage loan application volume, increased 1.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 0.9 percent compared with the previous week. The Refinance Index increased 0.9 percent to its highest level since Dec. 10, 2010. The seasonally adjusted Purchase Index increased 1.5 percent from one week earlier. The unadjusted Purchase Index increased 0.8 percent compared with the previous week and was 3.1 percent higher than the same week one year ago.
The Mortgage Bankers Association (MBA) found that the four week moving average for the seasonally adjusted Market Index is up 5.2 percent. The four week moving average is up 1.2 percent for the seasonally adjusted Purchase Index, while this average is up 7.1 percent for the Refinance Index.
The refinance share of mortgage activity increased to 66.8 percent of total applications from 66.7 percent the previous week. This is the highest refinance share since Jan. 28, 2011. The adjustable-rate mortgage (ARM) share of activity decreased to 5.8 percent from 6.3 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 4.69 percent from 4.60 percent, with points decreasing to 0.69 from 0.93 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.78 percent from 3.75 percent, with points decreasing to 1.04 from 1.22 (including the origination fee) for 80 percent LTV loans. The effective rate also decreased from last week.