Lower rates led to an increase in both purchase and refinance applications compared with the previous week. according to the Mortgage Bankers Association.

Mortgage application volume increased 7.1% for the week ending June 2, with purchase activity up 10% on a seasonally adjusted basis. This week's results included an adjustment for the Memorial Day holiday.

The unadjusted purchase index decreased 14% compared with the previous week and was 6% higher than the same week one year ago. Refinancings increased 3% on an unadjusted basis.

The refinance share of mortgage activity decreased to 42.1% of total applications from 43.2% the previous week.

Adjustable-rate mortgage applications decreased 3 basis points to 7.4%, while the Federal Housing Administration share increased 1 basis point to 10.6%.

The VA share of total applications increased 3 basis points to 11.1% and the USDA share remained unchanged at 0.8%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased 3 basis points to 4.14%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate decreased 3 basis points to 4.08%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased 2 basis points to 4.01%, while for 15-year fixed-rate mortgages, the average decreased 3 basis points to 3.39%.

The average contract interest rate for 5/1 ARMs decreased to 3.19% from 3.22%.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry