Mortgage application volume increased 10% during the week ended April 8, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
Applications for refinances increased 11%, while applications for purchases increased 8%.
On an unadjusted basis, application volume increased 10% compared with the previous week. Applications for purchases increased 9% on an unadjusted basis compared with the previous week and increased 24% compared with the same week one year ago.
“Helped by a persistently strong job market and low rates, applications for both conventional and government home purchase loans increased last week,” says Mike Fratantoni, chief economist for the MBA, in a release. “The purchase index was at its second-highest level since May 2010. Applications to refinance also increased as the 30-year contract rate decreased to its lowest level since January 2015.”
The refinance share of mortgage activity increased to 54.9% of total applications from 54.5% the previous week.
The increase in applications for refinances was likely attributable to falling interest rates. The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.82%, down from 3.86% the previous week.
The average rate for 30-year jumbo FRM was 3.74%, down from 3.76%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.66%, down from 3.73%.
The average rate for a 15-year FRM remained unchanged at 3.10%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.94%, unchanged from the previous week.
The ARM share of activity increased to 5% of total applications.
Looking at application volume by loan type, applications for mortgages backed by the FHA represented about 10.8% of all applications – down from 11.3% the week prior. Applications for Veterans Affairs mortgages were about 11.9% of all applications – down from 12.2% the week prior. The U.S. Department of Agriculture share of total applications remained unchanged at 0.8%.