MBA: Mortgage Application Volume Jumped 10.3%

Posted by Patrick Barnard on June 11, 2014 No Comments
Categories : Residential Mortgage

Could it be that home shoppers are finally emerging from their extra-long winter hibernation?

Mortgage application volume jumped 10.3%, on an adjusted basis, during the week ending June 6, compared to the week prior, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

The results include an adjustment for the Memorial Day holiday, which was apparently quite strong in terms of home buyer activity. On an unadjusted basis, the index increased 22% compared with the previous week.

Applications for refinances increased 11% from the previous week, while applications for purchases jumped 9%. These were among the biggest increases seen so far this year.

On an unadjusted basis, purchase volume increased 19% compared with the previous week and was 13% lower than the same week one year ago.

The jump in refinance application volume was likely due to the fact that mortgage rates have remained relatively flat for the past several weeks. The refinance share of mortgage activity increased to 54% of total applications from 53% the previous week.

The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.34%, up from 4.26% the previous week.

The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.27%, up from 4.22% the week prior.

The average rate for a 30-year FRM backed by the Federal Housing Administration was 4.06%, up from 3.99%.

The average rate for a 15-year FRM was 3.43%, up from 3.39%.

The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.18%, up from 3.11%.

The ARM share of activity remained unchanged at 8% of total applications.

All rates are based on closings.

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