Mortgage Applications Rise in the Week Ending May 17th—Third Consecutive Increase

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, May 17th, the Market Composite Index—a measure of mortgage loan application volume—increased 1.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1.1% compared with the previous week.

The Refinance Index increased 7.0% from one week ago and was 21.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index increased 1.0% compared with one week ago. The unadjusted Purchase Index decreased 2.0% compared with the previous week and was 11.0% lower than the same week one year ago.

Commenting on the results of this week’s survey, MBA Vice President and Deputy Chief Economist Joel Kan said:

“The 30-year fixed mortgage rate declined for the third straight week, dropping to 7.01%—the lowest level in seven weeks. Rates coming down from recent highs spurred some borrowers to act, with increases across both conventional and government refinance applications. VA refinances had a double-digit increase for the third consecutive week, although the current level of refinancing is still well below its historical average. Purchase activity continues to lag despite this recent decline in rates, down 11% from a year ago, as potential buyers still face limited for-sale inventory and high list prices.”