There was an increase of activity in the mortgage application space, according to new data from the Mortgage Bankers Association (MBA) covering the week ending June 9.
The Market Composite Index, a measure of mortgage loan application volume, was up by 7.2% on a seasonally adjusted basis from one week earlier and up 18% on an unadjusted basis. The seasonally adjusted Purchase Index was 8% higher from one week earlier and the unadjusted index was up 17% compared with the previous week – although the latter was also 27% lower than the same week one year ago.
The Refinance Index increased 6% from the previous week, although it was also 41% lower than the same week one year ago. The refinance share of mortgage activity remained unchanged at 27.3% of total applications from the previous week.
Among the federal programs, the FHA share of total applications decreased to 13% from 13.2% the week prior while the VA share of total applications increased to 12.6% from 12.5% and the USDA share of total applications increased to 0.5% from 0.4%.
Joel Kan, MBA’s vice president and deputy chief economist, noted, “Rates that are still more than a percentage point higher than a year ago, and low for-sale inventory continue to constrain homebuying activity in many markets. The average loan size on a purchase loan decreased for the third straight week, as we continue to see more first-time homebuyer activity in the purchase market.”
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