St Casimirs Mortgage Minute

Mortgage Applications Jump 9.3 Percent as Rates Fall

The Mortgage Bankers Association (MBA) reported on June 8 that mortgage application volume rose 9.3 percent from the previous week as the anemic May jobs report pushed down interest rates. Refinance applications rose 7 percent from the previous week and nearly 14 percent from a year ago, while purchase applications surged 12 percent from the previous week but were down 6 percent from a year ago. "Given the weak employment report for May, we think it is unlikely that the [Federal Reserve] will raise rates in June," said MBA chief economist Mike Fratantoni. "However, as other economic data are pointing to continued economic growth, we do expect that they will increase rates following their July meeting." The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances dropped from 3.85 percent to 3.83 percent.

From "Mortgage Applications Jump 9.3 Percent as Rates Fall"
CNBC (06/08/16) Olick, Diana