A modest up tick in applications for mortgages was driven by accelerating refinance activity. But applications for home purchase financing turned lower.
A seasonally adjusted increase of less than 1 percent from the preceding seven-day period was recorded for the Market Composite Index for the week ended June 16.
Even without and adjustments for seasonal factors, the index — a
measure of retail residential loan application volume — increased by under a percent.
The index was derived from the Mortgage Bankers Association’s
Weekly Mortgage Applications Survey. The survey reportedly covers more than three-quarters of all applications.
MBA said applications for refinances rose 2 percent from the week ended June 9. It was the highest level of refinance activity since November 2016. Refinance share widened to 46.6 percent from 45.4 percent a week earlier. But the share was more narrow than 57.7 percent a year earlier.
Applications for loans to finance a home purchase, however, turned a seasonally adjusted 1 percent lower from the last report. Foregoing any seasonal factors, purchase-money applications dropped 2 percent from the prior week but were up 9 percent from the week ended June 17, 2016.
The trade group said applications for mortgages insured by the Federal Housing Administration accounted for 10.1 percent of all business. FHA share thinned from 11.2 percent in the last report and 11.7 percent one year earlier.
Another 10.4 percent of overall activity was applications for loans guaranteed by the Department of Veterans Affairs. In the previous week and the same week in 2016, VA share was 11.1 percent.
Seven-and-a-half percent of all applications were for adjustable-rate mortgages.
ARM share was more broad than 7.4 the previous week and 5.7 percent the same week last year.
MBA reported jumbo rates that were 5 basis points less than conforming rates. The jumbo-conforming spread
thinned from a negative 7 BPS the prior week and a negative 6 BPS a year prior.
