More prospective borrowers for residential loans initiated the mortgage process last week. Behind the increase was a surge in refinance applications.
After making adjustments for seasonal factors, the Market Composite Index for the week that ended on June 9 moved up 3 percent from the prior week.
But foregoing any seasonal adjustments, the index —
a measure of retail loan application volume — shot up 27 percent from the week that included Memorial Day.
The Mortgage Bankers Association presented the details in its
Weekly Mortgage Applications Survey. The trade group says the survey covers more than three-quarters of all applications.
Applications for refinances jumped 9 percent from the week ended June 2.
At 45.4 percent, refinance share widened from 42.1 percent a week earlier but was much more narrow than 55.3 percent a year earlier.
MBA reported that the Purchase Index fell 3 percent from the last report on a seasonally adjusted basis. But setting seasonal factors aside, purchase applications climbed 19 percent from the preceding week and were up 8 percent from the week ended June 10, 2016.
At 7.4 percent, the share of applications for adjustable-rate mortgages was no different than in the prior report. ARM share widened, however, from 5.3 percent this week last year.
The report indicated that 11.2 percent of all applications were for loans insured by the Federal Housing Administration. FHA share broadened from 10.6 percent the previous week
but was more narrow than 11.8 percent a year previous.
Applications for mortgages guaranteed by the Department of Veterans Affairs represented 11.1 percent of overall activity, the same as one week earlier and one year earlier.
MBA reported that interest rates on jumbo mortgages were 7 basis points less than rate on conforming loans. The jumbo-conforming spread widened from a negative 6 BPS in the last report
and a negative 4 BPS in the the same week during 2016.