flurry of mortgage activity during the week ended June 1st didn’t last long. Application volume resumed its months-long retreat
last week as interest rates rose. The
Mortgage Bankers Association said its Market Composite Index, a measure of
volume, fell back by 1.5 percent on a seasonally adjusted basis during the week
ended June 8. Because the previous week’s
data was adjusted to account for the Memorial Day Holiday, the June 8 index
rebounded on an unadjusted basis, rising by 9.0 percent compared to earlier shortened
The Refinance and
the seasonally adjusted Purchase indices both slipped back by 2 percent
compared to the previous week. The unadjusted Purchase Index was up 9 percent week-over-week
and was 0.2 percent lower than the corresponding week in 2017.
Refi Index vs 30yr Fixed
Purchase Index vs 30yr Fixed
refinance share of mortgage activity was unchanged from the previous week at
applications jumped from 9.7 percent to 10.6 percent of the total, the VA share
increased to 10.7 percent from 10.1 percent while the USDA’s was unchanged at
The decline in
mortgage activity corresponded to the end of a three-week long roll-back in mortgage
interest rates. Both contract and effective rates increased for all loan types.
contract interest rate for 30-year fixed-rate mortgages (FRM) with conforming
loan balances of $453,100 or less increased to 4.83 percent from 4.75 percent. Points increased to 0.53 from 0.46.
The interest rate
for 30-year jumbo FRM, loans with balances higher than the conforming limit,
rose 4 basis points to 4.74 percent.
Points moved to 0.37 from 0.35.
Thirty-year FRM backed
by FHA guarantees had an average rate of 4.87 percent with 0.78 point. The
prior week’s rate was 4.77 percent with 0.70 point.
The rate for
15-year FRM ticked up to 4.23 percent from 4.21 percent, with points increasing
to 0.51 from 0.50 .
average contract interest rate for 5/1 adjustable-rate mortgages (ARMs) increased
to 4.11 percent from 4.08 percent, with
points increasing to 0.56 from 0.41. Applications for ARMs represented 6.8
percent of the total received, down from 7.1 percent the previous week.
Mortgage Applications Survey has been conducted since 1990 and covers over 75
percent of all U.S. retail residential mortgage 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.