The seasonally adjusted Purchase Index rose for the ninth time, a gain of 4 percent. The unadjusted Purchase Index increased 2 percent compared with the previous week and was 21 percent higher than the same week one year ago.
Purchase applications increased to the highest level in over 11 years and for the ninth consecutive week. The housing market continues to experience the release of unrealized pent-up demand from earlier this spring, as well as a gradual improvement in consumer confidence, according to Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
The FHA share of total applications decreased to 11.0 percent from 11.5 percent and the VA share was down to 11.5 percent from 12.3 percent. The USDA share was 0.7 percent. The loan balances requested in applications were up both overall (from $318,800 to $325,500) and for purchase loans which increased from $348500 to $354,000.
Interest rates, both contract and effective, declined for all fixed-rate mortgage (FRM) loans. The average contract interest rate for 30-year FRM with loan balances at or below the conforming limit of $510,400 decreased to 3.30 percent from 3.38 percent, the lowest level in survey history. Points dipped to 0.29 from 0.30.
The average contract interest rate for jumbo 30-year FRM, loans with balances exceeding the conforming limit, decreased to 3.67 percent from 3.70 percent. Points rose to 0.28 from 0.26.
The rate for 30-year FRM backed by the FHA decreased to 3.33 percent with 0.23 point. The previous week that rate was 3.38 percent, with 0.24 point.
Fifteen-year FRM decreased had a contract rate of 2.80 percent, down from 2.83 percent a week earlier. Points averaged 0.28, up from 0.26.
The average contract interest rate for 5/1 adjustable rate mortgages (ARMs) increased to 3.07 percent from 3.02 percent, points increased to 0.29 from 0.27 and the effective rate was higher. The share of applications that were for ARMs declined from 3.1 percent the prior week to 2.8 percent.
MBA’s Weekly Mortgage Applications Survey been conducted since 1990 and covers over 75 percent of all U.S. retail residential 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.