Factoring in the impact of a holiday week, a week-over-week improvement was noted for new residential loan applications. Purchases fared best.
A seasonally adjusted 9 percent increase was recorded from a week earlier for the Market Composite Index in the week that ended on June 3.
Without any adjustment for the Memorial Day holiday, the index — a measure of mortgage loan application volume —
was lower by 13 percent.
The Mortgage Bankers Association, which includes the index in its Weekly Mortgage Applications Survey, reported a seasonally adjusted 12 percent increase in applications for purchase financing.
Purchase-money activity fell 12 percent, however, without any seasonal adjustments and was also down, by 6 percent, from the same week in 2015.
Seasonally adjusted refinance application volume rose 7 percent from the previous seven-day period. Refinance share was trimmed to 53.8 percent from 54.3 percent in the week ended May 27. One year earlier, refinance share was 49 percent.
The trade group said 13.0 percent of all activity was for mortgages insured by the Federal Housing Administration, more than the 12.5 percent FHA share a week earlier.
FHA share, though, has been reduced from 14.3 percent the same week last year.
Another 11.5 percent of applications were for loans guaranteed by the Department of Veterans Affairs, thinning from a 12.0 percent VA share in the previous report but the same as in the year-earlier report.
Fixed interest rates on 30-year jumbo mortgages were 2 basis points less than on conforming loans. The negative jumbo spread thinned from 4 BPS a week prior but was no different than a year prior.
Five percent of all borrowers opted for adjustable-rate mortgages, the same as in the last MBA report.
But ARM share was thinner than 6.3 percent in the week ended June 5, 2015.
