The US Mortgage applications for home purchases experienced a significant increase in mortgage loan application volume. The Market Composite Index, a key measure of mortgage activity, rose by 15.6 per cent on a seasonally adjusted basis from the previous week. This surge was primarily fueled by a 28 per cent increase in refinancing activity, with lower rates early in the week prompting borrowers to act, especially those with VA loans. The Purchase Index also saw a notable uptick, rising by 9 per cent from the prior week. Mike Fratantoni, MBA's Chief Economist, noted fluctuating mortgage rates throughout the week, with the 30-year fixed mortgage rate averaging at 7.02 per cent. Despite rate fluctuations, refinance activity remains significantly higher compared to last year. Positive signs regarding home inventory levels were also observed, offering hope for prospective buyers. The data also revealed shifts in mortgage activity composition, with the refinance share increasing to 35.2 per cent of total applications. Interest rates for 30-year fixed-rate mortgages saw slight decreases, while rates for 15-year fixed-rate mortgages and 5/1 adjustable-rate mortgages experienced minor fluctuations. Overall, the data indicates a dynamic mortgage market driven by both refinancing and home purchases. Attribution: The Mortgage Bankers Association's (MBA) Weekly Applications Survey for the week ending June 7.
