Mortgage applications inched up at a mild pace during the week ending Sept. 19, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, recorded a 0.6% uptick on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index was up by a scant 0.1%.
The seasonally adjusted Purchase Index increased 0.3% from one week earlier, but the unadjusted index dipped by 1% compared with the previous week and was 18% higher than the same week one year ago. The Refinance Index increased 1% from the previous week and was 42% higher than the same week one year ago. The refinance share of mortgage activity increased to 60.2 percent of total applications from 59.8 percent the previous week.
Among the federal programs, the FHA share of total applications decreased to 15.7% from 16.3% the week prior while the VA share of total applications increased to 17.5% from 15.8% and the USDA share of total applications decreased to 0.4% from 0.5% the week prior.
Mike Fratantoni, MBA’s senior vice president and chief economist, observed that refinance volume is now 80% percent higher than four weeks ago, adding, “The refinance boost last week was from government applications, with VA refinance volume up almost 15%. While homebuyer demand typically tends to decrease during the fall, purchase application activity remains relatively strong right now, running 18% ahead of last year’s pace.”
