Mortgage application volume surged 8.4% during the week ended June 5 compared to the previous week, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, application volume was up a whopping 19%. Applications for refinances increased 7% while applications for purchases increased 10%.
On an unadjusted basis, purchase application volume increased 20% compared with the previous week and was 15% higher than the same week one year ago.
The increase comes after six straight weeks of falling application volume.
‘Mortgage application volume rebounded strongly in the week following the Memorial Day holiday, indicating that the holiday had a larger impact on business activity than originally assumed,’ says Mike Fratantoni, chief economist for the MBA, in a release. ‘Comparing volume over the past two weeks, purchase activity is up over 6 percent, while refinance activity is down 5 percent. Strong job gains in May and initial signs of wage growth are supporting the purchase market.’
The refinance share of mortgage activity remained unchanged at 49% of total applications.
The increase in application volume comes despite a significant increase in mortgage interest rates. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.17%, up from 4.02% the previous week.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.15%, up from 4.01%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.90%, up from 3.77%.
The average rate for a 15-year FRM was 3.37%, up from 3.27%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.06%, up from 2.97%.
The ARM share of activity increased to 6.3% of total applications.
Looking at applications volume by loan type, the FHA share of total applications was 14.3%, down from 14.9% the week prior. The Veterans Affairs share of total applications was 11.5%, down from 12.0% the week prior. The U.S. Department of Agriculture share of total applications was 1.1%, up from 1.0% the week prior.