Mortgage Applications Increase in the Week Ending June 7th

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending Friday, June 7th, the Market Composite Index—a measure of mortgage loan application volume—increased 15.6% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 26.0% compared with the previous week.

The Refinance Index increased 28.0% from one week ago and was 28.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index increased 9.0% compared with one week ago. The unadjusted Purchase Index increased 19.0% compared with the previous week but was 12.0% lower 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:

“Mortgage rates were trending lower over the course of last week until a stronger than anticipated employment report resulted in a bounce back, with the weekly average for the 30-year fixed mortgage rate decreasing to 7.02%. Lower rates earlier in the week meant a strong increase in refinance activity, particularly for VA borrowers, who jumped on the chance to lower their rates. Overall refinance activity was more than 27% above one year ago.

On a seasonally adjusted basis and compared to the holiday-adjusted level from the prior week, purchase activity also increased. Multiple data sources are now indicating that home inventory levels, while still historically low, are up significantly from last year at this time. This is good news for many prospective homebuyers who have been frustrated by the lack of homes on the market.”