The Weekly Mortgage Application Survey of the Mortgage Bankers Association showed some promise as the loan applications volume increased on the seasonally adjusted basis last week ending May 5.
The home purchase and refinance industries have shown an upswing according to the latest report.
Market Composite Index on the seasonally adjusted basis has risen by 2.4 percent from a week earlier. It has also increased on the unadjusted basis by 3 percent.
Seasonally Adjusted Purchase Index Hits Highest Level
Shooting 2 percentage levels higher from last week are the Purchase Index on both the seasonally adjusted and unadjusted basis. The MBA Purchase Index does not gauge the number of purchased homes or closed mortgage loans. It is a predictor of the nation’s housing market activity and home sales.
The seasonally adjusted purchase index has reached its highest since October 2015. Additionally, the conventional purchase index on the seasonally adjusted basis is also at its highest since April 2009 with its 2 percent increase.
Total Refinance Activity Increases
Refinance market is also showing some positive activity as the number of total applications climbs to 41.9 percent. On the downward trend is the adjustable rate mortgage (ARM), with applications decreasing to 8.2 percent. Both the USDA and VA shares remained the same at 0.8 percent and 10.8 percent respectively. The FHA shares, however, increased by 0.1 percent from the previous week, now at 10.5 percent.
Housing economists, analysts and home builders see the MBA’s indexes as prime indicators of finance activities of the present housing and mortgage markets. These indexes MBA’s standardized statistical measure to help evaluate the mortgage market’s performance.
The Weekly Mortgage Applications Survey is based on a sample of 75 percent of activities on a nationwide level. It gives an extensive breakdown of the mortgage application activities in the country.