Mortgage application volume increased 7% on a seasonally adjusted basis for the week ended May 3, as refinance volume hit its highest level since December and purchase volume on a seasonally adjusted basis is the most since May 2010, according to the Mortgage Bankers Association.
The unadjusted Refinance Index was up 8% over
Quicken Loans chief economist Bob Walters commented, “Strong refinance volume quietly continues amid a national conversation dominated by news of rising home prices and lack of inventory. Record low interest rates coupled with the HARP program aimed to help underwater homeowners, continues to drive refinancing.”
The MBA said the share of refi applications increased one percentage point to 76%. Home Affordable Refinance Program loans made up 30% of these, down four percentage points from the previous week.
The seasonally adjusted purchase index was up 2%. On an unadjusted basis, it is up 12% over the same week last year.
However, the government share of purchase applications declined to 29.1%, which is a two year low.
The average contract rate for the 30-year conforming FRM (MBA defines this as a loan with a balance of $417,500 or under) for the survey period decreased one basis point to 3.59%, the lowest point since last December. Federal Housing Administration-insured loans had an average contract rate for the week of 3.35%, up one basis point from the previous week.
Jumbo 30-year FRMs saw the average contract rate decline one basis point to 3.79%. The MBA said the rate for the 15-year FRM fell by three basis points to 2.81%, the lowest in the history of the survey.
The share of adjustable rate mortgages was unchanged at 4% of the week’s loan applications, as the average contract rate for the 5/1 ARM decreased by two basis points to 2.53%, also setting a new low.
