Mortgage Applications Climb in the Week Ending May 2

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, May 2, the Market Composite Index—a measure of mortgage loan application volume—increased 11.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 12.0% compared with the previous week.

The Refinance Index increased 11% from the previous week and was 51% higher than the same week one year ago.

The seasonally adjusted Purchase Index increased 11% from one week earlier. The unadjusted Purchase Index increased 12% compared with the previous week and was 13% higher than the same week one year ago.

Commenting on the results of this week’s survey, MBA Senior Vice President and Chief Economist Mike Fratantoni said:

“The economic news last week included a negative reading for first-quarter GDP growth and further signs of contraction in the manufacturing sector, mixed with a solid employment report for April. The net impact on mortgage rates was mostly downward but just back to levels from early April. The 30-year fixed rate declined to 6.84%. Conventional purchase application volume increased 13% and was up 9% from year-ago levels, a surprisingly strong move given lingering economic uncertainty. Borrowers of conventional loans tend to have larger loan sizes and more apt to be move-up buyers. Government purchase loans were also up 6% for the week, led by a 9% growth in FHA purchase applications. With rates moving lower, refinance volume increased 11%, led by VA refinance applications, which were up 26%.”