St Casimirs Mortgage Minute

Homebuying, Not Refinancing, Drives Mortgage Applications Up 2.3 Percent

The Mortgage Bankers Association (MBA) reported on May 25 that total mortgage application volume rose 2.3 percent on a seasonally adjusted basis from the previous week and that applications are up almost 24 percent from a year ago. Purchase applications rose 5 percent from the previous week and 17 percent from a year ago, fueling the increase in total application volume. "Purchase applications got back on track last week, resuming the level of activity observed throughout most of April and May," said Lynn Fisher, vice president of research and economics at the MBA. Meanwhile, refinance applications rose only 0.4 percent from the previous week. MBA also noted that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances climbed to 3.85 percent from 3.82 percent, and the average loan size for purchase applications reached a survey high of $307,700.

From "Homebuying, Not Refinancing, Drives Mortgage Applications Up 2.3 Percent"
CNBC (05/25/16) Olick, Diana