The flurry of mortgage activity during the week ended June 1st didn't last long. Application volume resumed its months-long retreat last week as interest rates rose. The Mortgage Bankers Association said its Market Composite Index, a measure of volume, fell back by 1.5 percent on a seasonally adjusted basis during the week ended June 8. Because the previous week's data was adjusted to account for the Memorial Day Holiday, the June 8 index rebounded on an unadjusted basis, rising by 9.0 percent compared to earlier shortened week.
The Refinance and the seasonally adjusted Purchase indices both slipped back by 2 percent compared to the previous week. The unadjusted Purchase Index was up 9 percent week-over-week and was 0.2 percent lower than the corresponding week in 2017.
Refi Index vs 30yr Fixed
Purchase Index vs 30yr Fixed
The refinance share of mortgage activity was unchanged from the previous week at 35.6 percent.
FHA applications jumped from 9.7 percent to 10.6 percent of the total, the VA share increased to 10.7 percent from 10.1 percent while the USDA's was unchanged at 0.8 percent.
The decline in mortgage activity corresponded to the end of a three-week long roll-back in mortgage interest rates. Both contract and effective rates increased for all loan types.
The average contract interest rate for 30-year fixed-rate mortgages (FRM) with conforming loan balances of $453,100 or less increased to 4.83 percent from 4.75 percent. Points increased to 0.53 from 0.46.
The interest rate for 30-year jumbo FRM, loans with balances higher than the conforming limit, rose 4 basis points to 4.74 percent. Points moved to 0.37 from 0.35.
Thirty-year FRM backed by FHA guarantees had an average rate of 4.87 percent with 0.78 point. The prior week's rate was 4.77 percent with 0.70 point.
The rate for 15-year FRM ticked up to 4.23 percent from 4.21 percent, with points increasing to 0.51 from 0.50 .
The average contract interest rate for 5/1 adjustable-rate mortgages (ARMs) increased to 4.11 percent from 4.08 percent, with points increasing to 0.56 from 0.41. Applications for ARMs represented 6.8 percent of the total received, down from 7.1 percent the previous week.
MBA's Weekly Mortgage Applications Survey has been conducted since 1990 and covers over 75 percent of all U.S. retail residential mortgage applications. 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 based on loans with an 80 percent loan-to-value ratio and points that include the origination fee.