Purchase applications continue growth streak this spring
The refinance index decreased 6% from the previous week but was still 57% higher than the same week one year ago. The refinance share of mortgage activity also saw a decrease, dropping to 38.6% of total applications from 40.4% the previous week.
The seasonally adjusted purchase index continued on an upward trajectory, increasing 2% from one week earlier. The unadjusted purchase index increased 2% compared with last week’s numbers and was 9% higher than the same week one year ago.
“Treasury yields continue to be volatile as economic uncertainty dominates markets. Most mortgage rates finished last week lower, with the 30-year fixed essentially unchanged at 6.70%. Last week’s level of purchase applications was its highest since the end of January, driven by a 3% increase in conventional purchases, while government purchase applications were down 2%,” said Joel Kan, MBA’s vice president and deputy chief economist.
“Overall purchase activity has shown year-over-year growth for more than two months as the inventory of existing homes for sale continues to increase, a positive development for the housing market despite the uncertain near-term outlook. Refinance applications were down almost 6% last week and remain very sensitive to rate movements, as most borrowers have mortgages with lower rates.”
The adjustable-rate mortgage (ARM) share of activity increased to 6.5% of total applications, MBA reported.
By product, the FHA share of total applications decreased to 15.8% from last week’s 16.5%. The VA share of total applications decreased slightly to 14.4% from 14.5% the week prior. The USDA share of total applications decreased to 0.5% from 0.6% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances saw a modest decrease to 6.70% from 6.71%. For 30-year fixed-rate mortgages with jumbo loan balances, rates decreased to 6.76% from 6.77%.
The average interest rate for 30-year fixed-rate FHA-backed mortgages decreased to 6.37% from 6.40%. The average interest rate for 15-year fixed-rate mortgages also saw a decrease to 6.04% from 6.08%.
The average contract interest rate for 5/1 ARMs increased to 6.04% from 5.89%.
