Mortgage applications higher as rates hold

by Steve Randall15 May 2017
There has been an increase in the number of new mortgage applications as mortgage rates remain relatively stable.

Data from Freddie Mac shows that the average mortgage rate for a 30 year fixed rate mortgage was 4.05% in the week ending May 11, slightly up from 4.02% in the previous week.

An average 15-year FRM was 3.29%, up from 3.27% and an average 5-year adjustable-rate mortgage was 3.14%, up from 3.13%.
Mixed economic reports over the last few weeks have anchored the 30-year mortgage rate around the 4 percent mark," said Freddie Mac’s chief economist Sean Becketti.

The rates have held fairly steady for 4 weeks and the latest figures from the Mortgage Bankers’ Association (w/e May 5) show that mortgage applications were up 2.4% on a seasonally-adjusted basis, according to its Market Composite Index.

On an unadjusted basis the index was up 3% compared to the previous week.

The refinance index was up 3%, while the purchase index gained 2% on both an adjusted and unadjusted basis. The adjusted purchase index hit its highest level since October 2015 while the unadjusted index jumped 6% compared to the first week of May 2016.

Refinance mortgage applications made up 41.9% of the total applications made in the week ending May 5, up from 41.6% a week earlier.  The share of applications included 10.5% FHA, 10.8% VA, 0.8% USDA.  

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