A nice improvement in the volume of mortgage applications was recorded for last week. Even more impressive was the rise in applications for loans to refinance.
During the week that concluded on June 15, the Market Composite Index ascended from the prior seven-day period by more than a seasonally adjusted 5 percent.
But
without any seasonal adjustments, the index — a measure of retail residential loan applications — was up 3 percent from the week ended June 8.
Data for the index were derived from the
Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
Applications to refinance an existing mortgage jumped 6 percent.
Refinances accounted for 36.8 percent of all applications, more than the 35.6 percent share in the week ended June 8 but not as much as 46.6 percent in the same-seven days a year ago.
Purchase-money loan applications increased by a seasonally adjusted 4 percent from the last report. The rise was just 1 percent without seasonal adjustments, though a 3 percent year-over-year increase was recorded.
Applications for mortgages insured by the Federal Housing Administration accounted for 10.1 percent of weekly activity, less than the 10.6 percent share a week earlier and 10.1 percent share a year earlier.
Another
10.2 percent of applications were for loans guaranteed by the Department of Veterans Affairs. VA share was cut from 10.7 percent in last week’s report and 10.4 percent in the week ended June 16, 2017.
At 7.0 percent, adjustable-rate mortgage share was wider than 6.8 percent the preceding week. ARM share thinned, though, from 7.5 percent in the year-earlier week.
Jumbo interest rates were 4 basis points lower than conforming rates. The spread thinned from 9 BPS in the previous seven-day period and 5 BPS one year previous.
