The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey showed that the Market Composite Index (MCI) – which measures mortgage loan application volume – increased 2.4% on a seasonally adjusted basis from the previous week.
The seasonally adjusted Purchase Index rose 2% from the previous week, reaching its highest level since October of 2015. On an unadjusted basis, the Index climbed 3%.
The seasonally adjusted Conventional Purchase Index rose 2% from one week ago, hitting its highest level since April of 2009. The adjustable-rate mortgage (ARM) share of activity fell to 8.2% of total mortgage applications.
The FHA loan portion of total applications rose scantily to 10.5% from 10.4% the previous week. The VA loan portion and USDA portion of total loan applications both remained unchanged at 10.8% and 0.8% respectively, from one week ago.
The Refinance Index rose 3% from the previous week. The unadjusted Purchase Index rose 2% compared with the prior week and was 6% higher than the same week one year ago. The refinance share of mortgage activity rose slightly to 41.9% of total loan applications from 41.6% the previous week.
On the heels of industry gains illustrated by the Weekly Mortgage Survey, the Fannie Mae Home Purchase Sentiment Index® (HPSI) increased 2.2 percentage points in April to 86.7, rebounding after March’s downtick. The net share of Americans who reported that now is a good time to buy a home increased 5 percentage points.
On a related note, consumers responded expressing greater confidence about the stability of their jobs, with the net share of that component jumping 7 percentage points. Additionally, on net, the share of respondents reporting that their household income is significantly higher than it was 12 months ago increased 2 percentage points.
Having regained lost ground in the previous month, Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae stated “The Home Purchase Sentiment Index (HPSI) [data]…is aligned with our market forecast of about 3% sales growth in 2017.”* Duncan added, “Historically strong inflation-adjusted house price gains are tempering consumer sentiment, whereas consumer optimism regarding the ease of getting a mortgage reached a survey high.”