Based on new data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending May 3, 2019, mortgage applications in the U.S. increased 2.7 percent from one week earlier.
The Market Composite Index, a measure of mortgage loan application volume, increased 2.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3 percent compared with the previous week.
The Refinance Index increased 1 percent from the previous week. The seasonally adjusted Purchase Index increased 4 percent from one week earlier. The unadjusted Purchase Index increased 5 percent compared with the previous week and was 5 percent higher than the same week one year ago.
“We saw a good week for the spring home buying season, as a 5 percent increase in purchase applications – both weekly and year-over-year – drove the results,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Average loan amounts also stayed elevated, with government purchase applications rising to the highest in the survey. Even with slower price appreciation in higher-priced markets, home prices are still rising enough to push average loan sizes higher.”
Added Kan, “With purchase activity increasing and mortgage rate movements mostly unchanged, the refinance share of applications were at their lowest level since last November.”
The refinance share of mortgage activity decreased to 37.9 percent of total applications from 38.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.4 percent of total applications.
The FHA share of total applications remained unchanged from 9.5 percent the week prior. The VA share of total applications increased to 11.1 percent from 10.9 percent the week prior. The USDA share of total applications remained unchanged from 0.6 percent the week prior.