Mortgage applications increase 5% – HousingWire


Mortgage applications rose 5.1% last week as mortgage rates continue to reach record levels, according to a report by Mortgage Bankers Association.

The refinancing index also increased by 12% compared to the the previous week – marking the highest level of refinancing activity in more than a month and a gain of 107% year-on-year.

The 30-year fixed rate fell seven basis points to 3.19%, a new record in the MBA survey. Last week’s fixed rate was also 63 basis points lower than when refinancings peaked in late March, leaving lenders grappling with capacity issues, according to the report.

“Lower rates have led to an increase in refinancing activity, with refinancing loan balances also reaching an all-time high for the last time in March,” said Joel Kan, associate vice president of economic and industrial forecasting at MBA.

Despite persistent economic uncertainty and high unemployment caused by the pandemic in progress, requisitions experienced the eighth consecutive week of year-over-year increase. However, that marked a 6% drop from the previous week, Kan said.

The Composite Market Index, a measure of mortgage application volume, also rose 5.1% on a seasonally adjusted basis from the previous week.

As the refinancing index increased, the refinancing share of the mortgage business also increased to 64.2% of total applications, from 60.1% the week before. The variable rate mortgage (ARM) activity share fell to 3% of total applications, from 3.4% the previous week.

Here’s a more detailed breakdown of this week’s mortgage application data:

  • FHA’s share of mortgage applications increased from 10.9% to 11.1%
  • The VA share of applications increased from 10.4% to 11%
  • USDA share of total claims increased from 0.7% to 0.6%
  • Average contractual interest rate for 30-year fixed rate mortgages with compliant loan balances ($ 510,400 or less) decreased from 3.26% to 3.19%
  • Average contractual interest rate for 30-year fixed rate mortgages with jumbo loan balances (greater than $ 510,400) increased from 3.52% to 3.53%
  • Average contractual interest rate for 30-year FHA-guaranteed fixed-rate mortgages increased from 3.31% to 3.24%
  • Average contractual interest rate for 15-year fixed-rate mortgages decreased from 2.77% to 2.7%
  • Average contractual interest rate for 5/1 ARMs increased from 2.98% to 3%

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