PhotoMortgage applications rose 7.1% in the week ending June 2, according to the weekly applications survey conducted by the Mortgage Bankers Association. The were adjusted to reflect the Memorial Day holiday.

The seasonally adjusted Purchase Index surged 10% from the week before, hitting its highest points since May 2010. And, while the Refinance Index rose 3%, the refinance share of mortgage activity fell to 42.1% of total applications from 43.2% the previous week.

The adjustable-rate mortgage (ARM) share of activity dropped to 7.4% of total applications, the FHA share inched up to 10.6% from 10.5%, the VA share moved to 11.1% from 10.8% the prior week, and the USDA share of total applications was unchanged at 0.8%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) fell three basis points -- from 4.17% to 4.14%, its lowest level since last November, with points increasing to 0.34 from 0.32 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
  • The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $424,100) dipped its lowest level since last November -- 4.08%, from 4.11%, with points decreasing to 0.21 from 0.30 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 30-year FRMs backed by the FHA was down two basis points to 4.01% -- its lowest level since last December -- with points increasing to 0.39 from 0.32 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs decreased to its lowest level since last November -- 3.39%, from 3.42%, with points increasing to 0.43 from 0.39 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs dropped three basis points to its lowest level since last November -- 3.19%, with points decreasing to 0.27 from 0.33 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The survey covers over 75% of all U.S. retail residential mortgage applications.

 

 


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