Mortgage rates rise slightly, mortgage activity spikes
Mortgage activity highest in 3 years
Mortgage rates remained relatively stable as mortgage application activity rose to its highest level in more than three years, the Mortgage Bankers Association (MBA) said this morning.
According to the MBA’s Weekly Mortgage Applications Survey (data for the week ending June 8, 2012, mortgage applications jumped 18 percent week-over-week to a level not seen since May 2009.
The MBA’s data includes an adjustment to account for the Memorial Day holiday. The 18 percent increase is on a seasonally-adjusted basis; on an unadjusted basis, application activity rose 30 percent week-over-week.
“Mortgage application volume increased sharply last week,” Michael Fratantoni, MBA’s Vice President of Research and Economics, said in a statement. “The increase was accentuated due to the comparison to the week including Memorial Day, but the level of refinance and total market activity is the highest since the spring of 2009.”
The MBA’s Refinance Index showed a 19 percent weekly increase and sits at its highest level since April 2009. The percentage of overall mortgage activity associated with refinance ticked up to 79 percent of total applications from 78 percent the previous week.
“Refinance volume increased as borrowers were able to lock in at mortgage rates below 4 percent, and purchase application volume was its highest level in over six months,” Fratantoni said.
Mortgage rates show little movement
Average rates for 30-year fixed-rate mortgages (loans with conforming balances of $417,500 or less) rose slightly to 3.88 percent from 3.87 percent one week earlier, while FHA-backed 30-year fixed mortgages also ticked up – to 3.71 percent from 3.70 percent the previous week.
Shorter-term 15-year fixed-rate mortgages increased to an average of 3.23 percent from 3.20 percent the week before, while 5-year adjustable rate mortgages (ARMs) stayed even on a weekly basis at an average of 2.78 percent.