Purchase applications took front and center in the latest report from the Mortgage Bankers Association, with applications reaching the second-highest level since May 2010.
According the MBA’s Weekly Mortgage Applications Survey for the week ending April 8, 2016, the seasonally adjusted Purchase Index increased 8% from one week earlier, its highest level since October 2015.
On the other side, the Refinance Index also surged, rising 11% from the previous week to its highest level since February 2016.
Mortgage applications as a whole increased 10% from one week earlier.
“Helped by a persistently strong job market and low rates, applications for both conventional and government home purchase loans increased last week. The purchase index was at its second-highest level since May 2010. Applications to refinance also increased as the 30-year contract rate decreased to its lowest level since January 2015,” said Mike Fratantoni, MBA’s chief economist.
The refinance share of mortgage activity grew to 54.9% of total applications, up from 54.5% the previous week, while the adjustable-rate mortgage share of activity increased to 5% of total applications.
The Federal Housing Administration’s share of total applications decreased to 10.8% from 11.3% the week prior. The Veteran Affairs’ share of total applications decreased to 11.9% from 12.2% the week prior, as the U.S. Department of Agriculture’s share of total applications remained unchanged to 0.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) dipped to 3.82% from 3.86%, marking the lowest level since January 2015.
Similarly, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.74% from 3.76%, the lowest rate since February 2016.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.66% from 3.73%, which is the lowest rate since April 2015.
The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 3.10%, while the average contract interest rate for 5/1 ARMs increased to 2.94% from 2.94%.