Mortgage applications increased last week thanks to a strong uptick in purchase demand.
According to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending June 2, mortgage applications increased 7.1% from one week earlier.
However, it’s important to note the data included an adjustment for the Memorial Day holiday.
Broken up, the Refinance Index increased 3% from the previous week.
Meanwhile, jumping to its highest level since May 2010, the seasonally adjusted Purchase Index increased 10% from one week earlier.
The refinance share of mortgage activity came in at 42.1% of total applications, falling from 43.2% the previous week. The adjustable-rate mortgage share of activity decreased to 7.4% of total applications.
The Federal Housing Administration’s share of total applications increased to 10.6% from 10.5% the week prior, while the Veterans Affairs’ share of total applications increased to 11.1% from 10.8% the week prior.
The Department of Agriculture’s share of total applications remained frozen at 0.8% from the week prior.
As for the various mortgage products, mortgage rates managed to stay relatively low.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to its lowest level since November 2016, 4.14%, from 4.17%.
Similarly, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) decreased to its lowest level since November 2016, 4.08%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to its lowest level since December 2016, 4.01%, from 4.03%.
The average contract interest rate for 15-year fixed-rate mortgages decreased to its lowest level since November 2016, 3.39%, from 3.42%, while the average contract interest rate for 5/1 ARMs also decreased to its lowest level since November 2016, 3.19%, from 3.22%.
