Mortgage applications rose 4.4% from the previous week, according to reporting from the most recent Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
The Market Composite Index, which measures mortgage loan application volume, rose 4.4% on a seasonally adjusted basis over one week ago. On an unadjusted basis, the Index showed growth of 3% compared with the week prior. The Refinance Index increased 11% from the previous week to its highest level since March 2017.
The refinance share of mortgage activity increased to 43.9% of total loan applications from 41.1% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.2% of total loan applications.
The seasonally adjusted Purchase Index dipped slightly, 1% from the previous week. The unadjusted Purchase Index fell 2% compared with the week prior, which was 3% above the same week 12 months ago.
National Association of Realtors® Chief Economist, Lawrence Yun, in a recent NAR report commented, “With [housing] price growth showing little sign of slowing, prospective first-time home buyers will be the most sensitive to any sudden uptick in rates in the months ahead.”*
The FHA loan share of total mortgage loan applications grew to 10.8% from 10.6% the previous week. The VA loan share of total loan applications dropped to 10.5% from 10.7% one week ago. The USDA share of total home loan applications was unchanged at 0.8% from the prior week.