Purchase activity drives jump in mortgage apps
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% (Economy.com 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 (Economy.com). “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.”