Mortgage applications survey conducted by the Mortgage Bankers Association covering the week ending April 21 showed an increase in mortgage applications. Per the survey, an increase of 2.7 percent was recorded compared to the previous week.
The volume of mortgage applications is measured via the Market Composite Index. On a seasonally adjusted basis, the increase was at 2.7 percent while the unadjusted mark is at 3 percent from the previous week.
Refinances increased by 7 percent compared to the week before. That translates to 44.0 percent of new refi applications from 42.4 percent. The purchase index, however, decreased by one percent. The ARM share of activity took 8.7 percent of the total applications. The median size of refi loans is $266,900, the highest level since September last year.
Other report highlights
- The FHA’s share of applications activity decreased by a single percentage point from 11.0 percent from last week to just 10.0 percent in the current week.
- The same plight happened to VA applications which finished at 10.9 percent compared to last week’s 11.1 percent.
- Meanwhile, the USDA’s share of total applications also decreased to 0.8 percent from last week’s 1.0 percent in the previous week.
- 30-year FRMs with conforming loan balances decreased in terms of average contract interest rate from 4.22 percent to 4.20 percent. For those with jumbo loan balances, the average contract interest rate remained the same at 4.15 percent.
- 30-year FRMs insured by the FHA concluded with an average contract interest rate of 4.03 percent, a decline from 4.09 percent. Fifteen-year FRMs also decreased, the lowest since November 2016, to 3.46 percent. Meanwhile, the average contract interest rates for 5/1 ARMs also declined from 0.26 percent to 0.18 percent.
All these, despite the continued shortage in available housing and increasing home prices. But whether the trend is sustainable or not remains yet to be seen.