Mortgage applications increased 2.4% from one week earlier thanks to a boost in purchase demand, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending May 5.
Hitting a new high, the seasonally adjusted Purchase Index increased 2% from one week earlier to its highest level since October 2015.
Similarly, the seasonally adjusted Conventional Purchase Index increased 2% from the previous week to its highest level since April 2009.
Refinance demand remained low, with the Refinance Index increasing 3% from the previous week. The refinance share of mortgage activity increased to 41.9% of total applications from 41.6% the previous week.
The adjustable-rate mortgage share of activity decreased to 8.2% of total applications.
The Federal Housing Administration’s share of total applications increased to 10.5% from 10.4% the week prior. The Veterans Affairs’ share of total applications remained frozen at 10.8% from the week prior, while the U. S. Department of Agriculture’s share of total applications also remained unchanged at 0.8% from the week prior.
For mortgage rates, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained at 4.23%.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased to 4.22% from 4.18%.
Additionally, the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.09% from 4.06%, while the average contract interest rate for 5/1 ARMs increased to 3.36% from 3.29%.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.50% from 3.51%.
