Applications surge in spite of rising rates

by Ryan Smith12 Jun 2014
Mortgage application volume spiked last week, according to data released by the Mortgage Bankers Association.

The MBA’s Market Composite Index, which measures loan application volume, was up 10.3% on a seasonally adjusted basis from the week prior. The index was up 22% on an unadjusted basis. The Refinance Index increased 11% from the previous week, and the seasonally adjusted Purchase Index was up 9% from the week prior. On an unadjusted basis, the Purchase Index rose 9%.

The refinance share of mortgage activity crept up from 53% to 54% last week. The adjustable-rate mortgage share held steady at 8%.

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 4.34% last week from the previous week’s average of 4.26%. The average rate for 30-year FRMs with jumbo loan balances rose to 4.27% from the previous week’s 4.22%.

The average rate for 5/1 ARMs increased to 3.18% last week from the prior week’s average of 3.11%.