Mortgage Applications Go Up Amidst Spring Home Buying Season

The Market Composite Index of the Mortgage Bankers Association rose by 2.3% on a seasonally adjusted basis in the week ended April 17th compared to the previous week. The volume of mortgage applications achieved higher week-over-week increase on a seasonally unadjusted basis. It was 3%.

The Refinance Index went up by 1% from the week before indicating the percentage increase in the volume of applications for mortgage refinance. The Purchase Index rose by 5% on a seasonally adjusted basis. It reached its highest level since June 2013 in the week ended April 17th. On a seasonally unadjusted basis, the volume of applications for home purchase loans increased by 6% from the previous week. It was 16% higher compared to the same week of last year.

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The Chief Economist of the MBA, Mike Fratantoni, said that the applications for home purchase loans had increased four times over the past five weeks in line with the progression of the spring buying season. He also noted that even though mortgage rated remained below four percent, the applications for mortgage refinance barely increased by one percent from the week before.

The share of refinance applications in the total volume of mortgage applications declined to its lowest level since October 2014. It went down to 56% from 58% in the week before. The share of FHA loan applications in the total volume of applications rose to 13.6% from 13.5% in the previous week. The share of VA loan applications increased to 11.1% from 11.0% on a week-over-week basis. The share of USDA loan applications retained its share of 0.8%.

The average contract interest rate of a 30-year fixed-rate mortgage declined to 3.83% from 3.87% in the previous week to reach its lowest level since January 2015. This also happened to the average contract rate of a 15-year fixed-rate mortgage which went to 3.11% down from 3.16%.

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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