Mortgage Applications Rose 0.6 Percent Over the Week

In the week ending June 16, 2017, the mortgage application activity rose by 0.6 percent. It followed an increase that happened a week prior, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey. This survey covers over 75 percent of the overall home mortgage applications in the country.

Survey Highlights

  • The number of mortgage applications rose on a week-over-week basis by 0.6 percent. This increase followed the 3.8 percent rise in the previous week ending June 9.
  • The refinance share of the overall mortgage activity was also on the rise, up by 2.1 percent. The home purchase activity, however, declined by one percentage point.
  • For the 30-year mortgage fixed rate loans, the average rate remains steady at 4.13 percent. This has stayed in this lowest level recorded since November 2016.
  • The average rate for mortgage application activity is 0.50 percent from 2007 to 2017.

In June, the highest level of mortgage applications was recorded in the week ending June 2, 2017, with 7.1 percent increase from the -3.4 percent in the last week of May. This has been the third consecutive week that the mortgage applications have shown positive growth.

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According to the National Association of Realtors, much of this rise in mortgage activity can be credited to homebuyers. The high consumer confidence and strong job growth fueled much of this increase.  Latest data show the continuous decrease in the unemployment rate in the United States, falling further down in May 2017 to 4.3 percent. The average hourly earnings also increased 0.20 percent in May from a month prior. These data are furnished and released by Trading Economics.

Although the US consumer confidencetook a downward curve to 94.5 in June 2017 from 97.1 in May, it still remains above the average level. The average consumer confidence is 86.07 percent from 1952 to 2017, with the lowest recorded level of 51.70 percent in May 1980.

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