Originators were slightly busier as more prospective borrowers completed applications for home loans during the latest seven-day period.
New applications to finance home purchases and refinance existing residential loans moved up less than a percent in the week ended May 6.
The activity was based on the seasonally adjusted Market Composite Index, which is a
measure of mortgage loan application volume.
The Mortgage Bankers Association includes the index as part of its Weekly Mortgage Applications Survey, which reportedly reflects more than three-quarters of all retail loan applications.
Without any seasonal adjustments, the index rose 1 percent from a week earlier.
A less than 1 percent week-over-week gain was recorded for refinance applications on a seasonally adjusted basis. Refinance share slipped to 52.8 percent from 52.9 percent but widened from 51 percent in the week ended May 8, 2015.
Applications for loans to finance a home purchase
were also up less than 1 percent from the last report. The unadjusted Purchase Index increased 1 percent from the week ended April 29 and was 14 percent higher than in the same week last year.
Thirteen percent of all applications were for mortgages insured by the Federal Housing Administration. FHA share was down from 13.5 percent in the report from seven days previous and 13.8 percent in the report from 12 months previous.
Another 11.7 percent of applications were for loans guaranteed by the Department of Veterans Affairs. VA share widened from 11.5 percent
but was thinner than 11.9 percent in the year-earlier report.
Applications for adjustable-rate mortgages represented 5.7 percent of the latest activity. ARM share
widened from 5.3 percent a week earlier but was thinner than 6.3 percent a year earlier.
Jumbo loan applications sported interest rates that were 8 basis points lower than conforming rates. The jumbo-conforming spread was the same as in the previous report
but far wider than a negative 1 basis point in the year-previous report.
