Applications for purchase mortgages gained for the eighth consecutive week to a level that was 13% higher than a year ago as states continue to reopen across the country according to a report by the Mortgage Bankers Association.
A seasonally adjusted index measuring purchase applications jumped 5% last week. For the first time in two months refinancings gained as this past week witnessed an 11% increase, and an 80% year-over-year gain, the MBA said.
The Market Composite Index, a measure of mortgage loan application volume, increased 9.3% on a seasonally adjusted basis from one week earlier.
“Fueled again by low mortgage rates, pent-up demand from earlier this spring, and states reopening, the recovery in the purchase market continues to gain steam, with the seasonally adjusted index rising to its highest level since January,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
After the refinance index hit its lowest level since February at 59.5% of total applications the week prior, this past week saw its first increase to 61.3%, according to the report. On the other hand, the adjustable-rate mortgage share of activity decreased to 3.1% of total applications.
Here is a more detailed breakdown of this week’s mortgage application data:
- The FHA’s share of mortgage apps increased to 11.5% from 11.2%.
- The VA share of applications increased to 12.43% from 12.0%.
- The USDA share of total applications fell to 0.6% from 0.7%.
- Mortgage interest rates for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) increased to 3.38% from 3.37% the week before.
- The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $510,400) increased to 3.70% from 3.66%.
- The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell to 3.38% from 3.46%.
- The average contract interest rate for 15-year fixed-rate mortgages fell from 2.83% to 2.85%.
- The average contract interest rate for 5/1 ARMs decreased to 3.02% from 3.05%.