Home-Purchase Application Activity Up This WeekBy RISMedia Staff
Despite ongoing geopolitical uncertainty, recent mortgage rate declines have boosted mortgage application activity for a second week in a row.
According to the latest Market Composite Index from the Mortgage Bankers Association (MBA)—its measure of mortgage loan activity volume and includes purchases and refinances—increased 7.9% on a seasonally adjusted basis from last week’s 1.8% increase, for the week ending April 17. On an unadjusted basis, the Index increased 9% compared with the previous week. “Mortgage rates declined last week as financial markets responded positively to the Middle East ceasefire and the lower trend in oil prices, with the 30-year fixed rate decreasing to 6.35 percent,” said Mike Fratantoni, MBA’s SVP and chief economist. “Despite the geopolitical uncertainty, housing demand is being supported by a still resilient job market, and homebuyers are experiencing a buyer’s market in most of the country given the higher levels of inventory relative to last year.” According to this week’s report, MBA’s Refinance Index increase was 15% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 10% from one week earlier. The unadjusted Purchase Index 12% compared with the previous week and was 14% higher than the same week one year ago. The refinance share of mortgage activity decreased to 44.2% of total applications from 45.5% the previous week. The adjustable-rate mortgage (ARM) share of activity was down again this week, decreasing to 8.0% of total applications. MBA reported that the FHA share of total applications remained unchanged at 18.2%. The VA share of total applications decreased to 15.0% from 15.7% the week prior. The USDA share of total applications remained unchanged at 0.5% from the week prior. Click here for the full report. |
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