It was another tepid week for mortgage applications despite the current low-mortgage rate environment, with applications increasing 2.3% from one week earlier, the latest data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending May 20, 2016 posted.
The Refinance Index marginally increased 0.4% from the previous week, while the seasonally adjusted Purchase Index increased 5% from one week earlier.
Continuing to hover in the low 50s, the refinance share of mortgage activity decreased to 53.7% of total applications from 54.6% the previous week. The adjustable-rate mortgage share of activity ticked up to 5.7% of total applications.
Meanwhile, the average loan size for purchase applications reached a survey high of $307,700. This shouldn’t come as a surprise given home-price appreciation has steadily risen for roughly a year now, and it doesn’t look like it’s going to change anytime soon.
The Federal Housing Administration’s share of total applications increased to 12.7% from 12.5% the week prior. The Veteran Affairs’ share of total applications decreased to 11.5% from 12.1% the week prior, as the United States Department of Agriculture once again remained unchanged at 0.7%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) moved higher to 3.85% from 3.82%.
Also rising, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 3.82% from 3.74%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.70% from 3.63%.
In addition, the average contract interest rate for 15-year fixed-rate mortgages increased to 3.06% from 3.02%, while the average contract interest rate for 5/1 ARMs increased to 3.09% from 2.94%.