Mortgage application activity picked up during the week ending April 10 thanks to an uptick in refinancing, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, increased 1.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 2%.
The seasonally adjusted Purchase Index dipped by 1% from one week earlier while the unadjusted index was unchanged – the latter was also 3% lower than the same week one year ago.
The Refinance Index increased 5% and was 15% higher than the same week one year ago, while the refinance share of mortgage activity inched up to 45.5% of total applications from 44.3% the previous week.
Among the federal programs, the FHA share of total applications decreased to 18.2% from 19.3% the week prior and the VA share of total applications decreased to 15.7% from 16.1% and the USDA share of total applications remained unchanged at 0.5%.
“Purchase activity remained subdued as potential homebuyers remained hesitant given the current economic uncertainty, which kept purchase applications below last year’s level for the second consecutive week,” said Joel Kan, MBA’s vice president and deputy chief economist, adding that a dip in mortgage rates “helped to support an increase in conventional refinance applications, which had declined for five consecutive weeks.”
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