Refi and Purchase Apps Bounce Back After Holiday Week

Mortgagernapplications surged by 10.3 percent during the week ended June 6.  The Mortgage Bankers Association (MBA) saidrnits Market Composite Index, a measure of application volume increased by thatrnamount on a seasonally adjusted basis and was up 22 percent compared to thernprevious week which had been shortened by the observed Memorial Day holiday.  </p

The increase wasrnacross the board with applications for both purchase mortgages and refinancingrnmaking healthy gains.  The RefinancernIndex was up 11 percent from the previous week and the seasonally adjusted PurchasernIndex rose 9 percent.  The unadjustedrnPurchase Index was 19 percent higher than the week before but 13 percent belowrnthe level during the same week in 2013. rnThe refinance share of applications increased to 54 percent from 53rnpercent.</p

Refinance Index vs 30 Yr Fixed</p

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Purchase Index vs 30 Yr Fixed</b</p

The contractrninterest rate for 30 year fixed-rate mortgages (FRM) with conforming balancesrnof $417,000 or less moved from an average of 4.26 percent with 0.13 point to<b4.34 percent with 0.16 point.  The jumbornversion of the 30-year FRM (balances above $417,000) had an average rate ofrn4.27 percent compared to 4.22 percent the previous week and points increased torn0.12 from 0.11.</p

The average contract interest rate forrn30-year fixed-rate mortgages backed by the FHA increased to 4.06 percent fromrn3.99 percent.  Points increased to -0.03rnfrom -0.46.</p

 Ratesrnfor 15-year FRM averaged 3.43 percent with 0.22 point.  The previous week the average was 3.39rnpercent with 0.07 point.  </p

The average contract interest rate for 5/1 adjustablernrate mortgages (ARMs) increased to 3.18 percent from 3.11 percent, with pointsrnincreasing to 0.35 from 0.05.  ARMsrncontinued to hold an 8 percent share of the application volume.</p

MBA’s survey covers over 75 percent of allrnU.S. retail residential mortgage applications, and has been conducted sincern1990.  Respondents include mortgage bankers, commercial banks andrnthrifts.  Base period and value for all indexes is March 16, 1990=100 andrninterest rates are quoted for loans with an 80 percent loan-to-valuernratio.  Points include the originationrnfee.

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