Mortgage application activity rises as rates end the week mixed
Mortgage application activity increased 5.1%, rising for the second time in the past three weeks, according to the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ending June 15 found that the refinance index increased by 6% from the previous week. The refinance share of application activity increased to 36.8% from 35.6% the previous week.
"It was a mixed week for rates in MBA's survey," Joel Kan, the MBA's associate vice president of industry surveys and forecasting, said in a press release. "Treasury yields finished the week slightly higher as a hawkish statement from the Federal Open Market Committee and market jitters caused by trade concerns and other geopolitical uncertainty offset each other."
The seasonally adjusted purchase index increased by 4% from one week earlier, while the unadjusted purchase index increased by 1% compared to the previous week and was 3% higher than the same week one year ago.
Adjustable-rate loan activity increased to 7% from 6.8% of total applications, while the share of Federal Housing Administration-guaranteed loans decreased to 10.1% from 10.6% the week prior.
The share of applications for Veterans Affairs-guaranteed loans decreased to 10.2% from 10.7% and the U.S. Department of Agriculture/Rural Development share decreased to 0.7% from 0.8% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) remained unchanged at 4.83%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100), the average contract rate increased 5 basis points to 4.79%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased 1 basis point to 4.82%. For 15-year fixed-rate mortgages the average increased 4 basis points to 4.27%.
The average contract interest rate for 5/1 ARMs decreased 5 basis points to 4.06%.