applications activity rallied slightly for the second consecutive time during
the week ended May 9. The Mortgage
Bankers Association (MBA) said that mortgage application volume as measured by
its Market Composite Index increased during the week by a seasonally adjusted 3.6
percent and was up 3 percent on an unadjusted basis.
to the MBA's Weekly Mortgage Applications Survey indicated that refinancing also
recovered slightly. The Refinance Index increased
7 percent compared to the previous week, its best performance in nearly a
month. The refinancing share of
applications, which, during the week ended May 2 made up less than half of all applications
for the first time since 2009, recovered to 50 percent.
Refinance Index vs 30 Yr Fixed
The Purchase Index was
virtually unchanged from the previous week, falling a faction of a percent on a
seasonally adjusted basis and rising about the same amount on the unadjusted
index. The unadjusted Purchase Index was
12 percent lower than during the same week in 2013.
Purchase Index vs 30 Yr Fixed
The average contract interest rate for 30-year
fixed-rate mortgages (FRM) with conforming loan balances ($417,000 or less) decreased to 4.39 percent,
the lowest rate since November
2013, from 4.43 percent, with points increasing to 0.22 from 0.21. The rate for average 30-year FRMs with jumbo
loan balances over $417,000 was unchanged from the previous week at 4.29
percent but points increased to 0.16 from 0.13.
The jumbo 30-year was the only loan product for which the effective rate
increased during the week.
FHA-backed 30-year FRM had its lowest rate since November, an average
of 4.09 percent, down from 4.13 percent.
Points decreased to -0.17 from -0.03.
The average contract
interest rate for 15-year
FRM also was at the lowest level since November 2013; 3.48 percent with 0.12 point compared to
3.52 percent with 0.22 point the previous week.
The average contract
interest rate for 5/1 adjustable rate mortgages (ARMs) decreased
to 3.17 percent
from 3.21 percent, with points decreasing to 0.24 from 0.29. The market share of all types of ARMS decreased
from 9 percent to 8 percent
MBA's survey covers
over 75 percent
of all U.S. retail residential mortgage
applications, and has been conducted since 1990.
Respondents include mortgage
bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100
and interest rate information is for loans with an 80 percent loan to value
ratio and points include the origination fee.