Mortgage applications increased 3.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 9. The Market Composite Index, a measure of mortgage loan application volume, increased 3.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased three percent compared with the previous week. The Refinance Index increased seven percent from the previous week to its highest level since the week ending April 11, 2014. The seasonally adjusted Purchase Index decreased less than 1one percent from one week earlier. The unadjusted Purchase Index increased less than one percent compared with the previous week and was 12 percent lower than the same week one year ago.
The refinance share of mortgage activity increased to 50 percent of total applications from 49 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8 percent of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.39 percent, the lowest rate since November 2013, from 4.43 percent, with points increasing to 0.22 from 0.21 (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 $417,000) remained unchanged at 4.29 percent, with points increasing to 0.16 from 0.14 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.09 percent, the lowest rate since November 2013, from 4.13 percent, with points decreasing to -0.17 from -0.03 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.48 percent, the lowest rate since November 2013, from 3.52 percent, with points decreasing to 0.12 from 0.22 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 3.17 percent from 3.21 percent, with points decreasing to 0.24 from 0.29 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
