Perhaps there is hope for the housing market this summer…

Mortgage application volume jumped 13.0 percent on a seasonally adjusted basis during the week ending June 10, according to the latest survey from the Mortgage Bankers Association.

On an unadjusted basis, the home loan application index shot up 24.5 percent, though the previous week included Memorial Day, not a popular day for shopping for mortgages.

The refinance index skyrocketed 16.5 percent from the previous week as rates improved further, and the purchase money mortgage index saw a 4.5 percent gain.

The unadjusted purchase index was up 14.2 percent from a week earlier and 6.1 percent higher than the same week a year ago.

Despite the uptick in refi applications, volume is still 28 percent below the levels seen in November, when mortgage rates were at comparable levels.

The MBA believes this could have something to do with borrowers’ lack of home equity, and in many cases, negative equity.

Still, the refinance share of mortgage activity increased to 70.0 percent of total apps from 67.3 percent a week earlier.

This can be attributed to the near-record low mortgage rates on offer.

The popular 30-year fixed averaged 4.51 percent, down from 4.54 percent, while the 15-year fixed remained unchanged at 3.67 percent.

The interest rates above are good for mortgages at 80 percent loan-to-value – but pricing adjustments can lower or raise your actual interest rate.

Keep in mind the MBA’s weekly survey covers more than half of all retail, residential loan applications, but does not factor out duplicate or rejected apps, which have surely risen since the mortgage crisis got underway a few years back.

Recent Comments: