Home Purchase Mortgage Applications Highest Since July 2013

The volume of applications for home purchase loans rose to its highest level in 21 months during the week ended April 3rd 2015, according to the Weekly Mortgage Applications Survey of the Mortgage Bankers Association. This was its third consecutive weekly increase on a seasonally adjusted basis.

The seasonally adjusted Purchase Index, which reflects the volume of applications for home purchase mortgages, went up by 7% from the previous week. The unadjusted Purchase Index marked the same increase. It was 12% higher in comparison to the same week of 2014.

The volume of applications for mortgage refinance moved in the opposite direction. The Refinance Index dropped down by 3% compared with the week before. The overall results for the week ended April 3rd was a small increase in the total volume of mortgage applications. On a seasonally adjusted basis, the Market Composite Index rose by 0.4% from the previous week. On an unadjusted basis, the rise was of 1%.

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The Chief Economist of the MBA, Mike Fratantoni, commented that the increase in the volume of applications for home purchase mortgages was driven by the mortgage rates, which still remained low, and by the strengthening of the housing markets.

The drop in refinance activity and the rise in home purchase loan applications led to a decrease in the share of applications for mortgage refinance to 57% from 60% in the week before. This is the smallest share of refinance applications since October 2014.

The share of applications for FHA loans rose to 13.2% from 12.8% in the previous week. The share of VA loan applications increase to 10.7% from 10.5% one week earlier. The USDA loan share remained the same – 0.8%.
The contract interest rates of all types of mortgage loans covered in the MBA’s survey declined in the week ended April 3rd. The 30-year fixed rate jumbo loan had the lowest interest rate since May 2013. It was 3.81%.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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