Increases in conventional mortgage loan applications for both purchases and refinancings contributed to a 1.7% seasonally adjusted increase in overall application volume for the week ended May 4, according to the Mortgage Bankers Association. This was spurred by record low rates for both 30-year conventional fixed rate and 15-year fixed rate loans.
The Refinance Index increased 1.3% from the previous week, driven by a 1.8% rise in the Conventional Refinance Index. However, the Government Refinance Index decreased 2.3%. The seasonally adjusted Purchase Index increased 3.4% from one week earlier, as conventional applications increased by 5.4% during the same time frame.
In fact, purchase applications for government loan products are at their lowest level since March 27, 2009, at 35.8% of all purchase apps.
The refi share of apps fell to 72.1% from 72.6% in last week's survey.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased by four basis points from the previous week to 4.01%, which the MBA says is the lowest level for this loan in survey history.
The average contract interest rate for 30-year Federal Housing Administration-insured loans increased by one basis point to 3.81%.
The rate for 30-year FRMs with jumbo loan balances fell by three basis points to 4.29%. The average contract interest rate for 15-year FRMs declined two basis points to 3.29%, which is also a record low.
