Application activity increases as rates remain flat

Mortgage applications increased 2.4% from one week earlier as there was little movement in interest rates, according to the Mortgage Bankers Association.

The MBA's Weekly Mortgage Applications Survey for the week ending May 5 found that the refinance index increased 3% from the previous week. The survey period ended one day after the most recent Federal Open Market Committee meeting.

The seasonally adjusted purchase index increased 2% from one week earlier, while the unadjusted purchase index increased 2% compared with the previous week and was 6% higher than the same week one year ago.

The refinance share of mortgage applications increased to 41.9% of total applications from 41.6% the previous week.

Adjustable-rate mortgage applications decreased to 8.2% of the total, while the Federal Housing Administration share increased 1 basis point to 10.5% from the week prior.

The VA share and USDA share both remained unchanged at 10.8% and 0.8%, respectively.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged at 4.23%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate increased to 4.22% from 4.18%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased 3 basis points to 4.09%, while for 15-year fixed-rate mortgages, the average decreased 1 basis point to 3.5%.

The average contract interest rate for 5/1 ARMs increased to 3.36% from 3.29%.