Purchase activity drives jump in mortgage apps

June 11, 2015

WASHINGTON (6/11/15)--After more than a month of declining activity, mortgage applications perked up for the week ending June 5, as the Mortgage Bankers Association’s weekly mortgage applications survey index surged by 8.4% ( June 10).

Purchase applications fueled the gains, climbing by 9.7% during the week, while refinancing activity rose by 7%.

The overall index remains 15.7% lower on a four-week moving average basis thanks to previous weekly declines, but it also sits 3.3% higher on an annual basis.

Further, purchase applications only fell 1.3% below month-ago levels, while increasing 13% above their year-ago levels.

“Mortgage activity rebounded last week, breaking a six-week-long string of losses for the composite index,” said Michael McGrane, Moody’s analyst ( “The refinance index made up some of the ground it lost in the prior week, despite rising interest rates.”

The 30-year fixed-rate mortgage rate rose 15 basis points during the week to 4.17%--17 basis points higher than four weeks ago, but 17 basis points lower annually.

For 30-year fixed-rate jumbo mortgages, the rate climbed 14 basis points to 4.15%.

The five-year adjustable-rate mortgage rate increased by 9 basis points to 3.06%, which is 12 basis points lower on a year-over-year basis.

“Refinance activity is unlikely to have a breakout year,” McGrane said. “Most homeowners who intended to, have likely already refinanced, and mortgage interest rates will rise further as the Fed prepares to hike interest rates.”