US Mortgage Applications Trend Higher in the Week Ending May 9

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, May 9, 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 1.0% compared with the previous week.

The Refinance Index decreased 0.4% from the previous week but was 44% higher than the same week one year ago.

The seasonally adjusted Purchase Index increased 2% from one week earlier. The unadjusted Purchase Index increased 2% compared with the previous week and was 18% higher than the same week one year ago.

Commenting on the results of the latest survey, MBA Senior Vice President and Chief Economist Mike Fratantoni said:

“Last week saw steadier mortgage rates, as the FOMC meeting played as predicted, and market movements led to a small two-basis point increase in the 30-year conforming rate to 6.86%. Refinance volume was little changed for the week, with a small increase in government refinances, and a decrease in conventional refinances. The news for the week was the growth in purchase applications, up 2.3% and almost 18% higher than last year’s pace. Despite the economic uncertainty, the increase in home inventory means there are additional properties to buy, unlike the last two years, and this supply is supporting more transactions.

There was a notable gain in government purchase applications, up almost 5% for the week and 40% on an annual basis.”