Home mortgage applications ticked greater last week, reversing recent declines as easing rates offered a modest increase to activity. The Home Mortgage Bankers Association (MBA) reported a 1.8% boost on a seasonally changed basis for the week ending April 10.
Re-finance activity led the gain, with the Refinance Index increasing 5% from the previous week and now sitting 15% above year-ago levels. The increase follows a pullback in rates, which assisted restore some customer incentive after several weeks of damaging demand.
Purchase activity remained soft, with the seasonally adjusted Purchase Index slipping 1% week over week. On an annual basis, purchase applications are down 3%, marking a 2nd successive week of year-over-year declines as buyer doubt persists.
MBA’s Joel Kan said,” This dip in rates helped to support an increase in conventional refinance applications, which had declined for 5 consecutive weeks. Purchase activity remained controlled as possible homebuyers remained reluctant provided the current economic unpredictability, which kept purchase applications below in 2015’s level for the second successive week …”
Application composition shifted towards refinancing, with refinance share increasing to 45.5% from 44.3% the previous week. ARM share reduced somewhat to 8.4%. FHA share fell to 18.2%, while VA share decreased to 15.7% and USDA share held steady at 0.5%.
Mortgage Rate Summary:
- 30yr Repaired: 6.42% (from 6.51%)|Points: 0.62 (from 0.61)
- 15yr Fixed: 5.85% (from 5.90%)|Points: 0.73 (from 0.74)
- Jumbo 30yr: 6.48% (from 6.54%)|Points: 0.46 (from 0.35)
- FHA: 6.14% (from 6.22%)|Points: 0.73 (the same)
- 5/1 ARM: 5.63% (from 5.60%)|Points: 0.46 (from 0.68)