Continued steady mortgage rates this past week resulted in a slight increase in mortgage application volume as the spring market is now fully underway.
According to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association (MBA) for the week ending May 9, the Market Composite Index (a measure of mortgage loan application volume) increased 1.1% from the previous week’s 11.0% increase. On an unadjusted basis, the Index decreased 1% compared with the previous week.
“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%,” said Mike Fratantoni, MBA’s SVP and chief economist. “Refinance volume was little changed for the week, with a small increase in government refinances, and a decrease in conventional refinances.”
Fratantoni pointed to an overall increase in purchase applications at a notable 18% over last year at this time as the biggest news item in the mortgage application report this week.
“The news for the week was the growth in purchase applications, up 2.3% and almost 18% higher than last year’s pace,” he said. “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.”
Added Fratantoni, “There was a notable gain in government purchase applications, up almost 5% for the week and 40% on an annual basis.”
This week’s MBA report also noted the Refinance Index decreased 0.4% from the previous week and was 44% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 2% from one week earlier. The unadjusted Purchase Index increased 2% compared with the previous week and was 18% higher than the same week one year ago.
The refinance share of mortgage activity decreased to 36.4% of total applications from 37.1% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.4% of total applications, according to the report.
To view the full report, click here.
