Mortgage applications rose 2.9 percent on a seasonally adjusted basis from a week earlier, the Mortgage Bankers Association said today.
On an unadjusted basis, application volume was up the very same 2.9 percent for the week ended May 9, 2008, but down 1.1 percent from the same period a year ago.
The rise in applications was led by a 6.5 percent increase in refinance activity, but held back by a 0.7 percent decrease in purchase activity and a 0.7 percent drop in FHA loans.
The refinance share of total applications climbed to 48.7 percent from 47.1 percent a week earlier as interest rates dipped for the second straight week.
The average 30-year fixed-rate mortgage fell to 5.82 percent from 5.91 percent, while the 15-year slid to 5.38 percent from 5.49 percent.
Adjustable-rate mortgages also showed strength, with the average one-year ARM falling to 6.6 percent from 6.77 percent, pushing the share of ARM activity to 8.3 percent from 6.8 percent of total applications.
Points increased by roughly 10 basis points on fixed-rate mortgages and dipped roughly five basis points on ARMs.
The MBA’s weekly survey, compiled every week since 1990, covers about half of all U.S. retail residential mortgage applications.
Despite the generally decent numbers, it should be noted that the index only covers retail originations, which have clearly increased as a result of wholesale’s demise.
It also doesn’t address the perceived surge in denied applications as tighter credit conditions and falling property values have surely made it more difficult to get approved.
(photo: alextm)
