by Bill McBride on 6/10/2015 07:00:00 AM
Wednesday, June 10, 2015
Mortgage applications increased 8.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 5, 2015. The previous week’s results included an adjustment for the Memorial Day holiday. ...Click on graph for larger image.
The Refinance Index increased 7 percent from the previous week. The seasonally adjusted Purchase Index increased 10 percent from one week earlier. The unadjusted Purchase Index increased 20 percent compared with the previous week and was 15 percent higher than the same week one year ago.
“Mortgage application volume rebounded strongly in the week following the Memorial Day holiday, indicating that the holiday had a larger impact on business activity than originally assumed. Comparing volume over the past two weeks, purchase activity is up over 6 percent, while refinance activity is down 5 percent. Strong job gains in May and initial signs of wage growth are supporting the purchase market,” said Mike Fratantoni, MBA’s Chief Economist.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.17 percent, its highest level since November 2014, from 4.02 percent, with points increasing to 0.38 from 0.33 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index.
The increase this week was probably related to the holiday adjustment. With higher rates, refinance activity should decline.
2014 was the lowest year for refinance activity since year 2000.
The second graph shows the MBA mortgage purchase index.
According to the MBA, the unadjusted purchase index is 15% higher than a year ago.
Posted by Bill McBride on 6/10/2015 07:00:00 AM