Mortgage application activity benefited from a bump-up in refinance action for the week ending June 19, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, increased 1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index was down by 10%.
The seasonally adjusted Purchase Index dipped by 1% from one week earlier while the unadjusted index dropped 12% – the latter was also 3% higher than the same week one year ago.
The Refinance Index inched up by 3% from the previous week and was 17% higher than the same week one year ago. The refinance share of mortgage activity increased to 41.5% of total applications from 40.3% in the previous week.
Among the federal programs, the FHA share of total applications increased to 17.9% from 17.5% the week prior while the VA share of total applications decreased to 12.3% from 12.9% and the USDA share of total applications increased to 0.5% from 0.4% the week prior.
“Mortgage rates changed little over the course of last week, despite the more hawkish tone from the FOMC at its June meeting,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “Purchase application volume edged slightly lower, while refinance activity posted modest gains. Despite the elevated mortgage rates and overall economic uncertainty, mortgage application volume is running 8 percent above year-ago levels.”
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