Mortgage application volume increased by 13% for the week ended June 10, as those borrowers who can refinance are coming into the market, according to the Mortgage Bankers Association.
Still, as Mike Fratantoni, MBA's vice president of research and economics points out, refi application activity is 28% below November's volume, the last time rates were this low. Many people can't refinance because of a lack of equity in their home, he said.
The Refinance Index increased by 16.5%, while the seasonally adjusted Purchase Index is up 4.5% over the week ended June 3. The index values for the previous week were adjusted to take into account Memorial Day.
On an unadjusted basis, the Purchase Index is 6.1% higher than the same week in 2010.
The market share of refi applications rose to 70% from 67.3% one week prior. This is the highest share of refi applications since the week of Jan. 21. MBA tracks activity through its proprietary application index.
The average contract interest rate for 30-year fixed-rate mortgages decreased 3 basis points to 4.51% from 4.54%, with points increasing to 1.05 from 0.94 (including the origination fee) for 80% loan-to-value ratio loans. This is the lowest point for this rate since the week of Nov. 19, 2010.
The average contract interest rate for the 15-year FRM was unchanged at 3.67% and points were unchanged at 1.06.
