Mortgage applications increased 13 percent nationwide in the week ending June 10, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey, released today. Refinance applications also jumped 16.5 percent from the previous week.
“Mortgage rates have declined for eight of the past nine weeks. Coming off of the Memorial Day holiday weekend, refinance application volume increased significantly, as borrowers jumped to lock in the lowest mortgage rates since last November,” said Michael Fratantoni, MBA’s vice president of research and economics.
“The volume of refinance applications still remains 28 percent below levels seen at that time, as borrowers with an incentive to refinance remain constrained from doing so by lack of equity in their homes,” he continued. The refinance share of mortgage activity increased to 70 percent of total applications from 67.3 percent the previous week, the highest refinance share since Jan. 21, 2011.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.51 percent from 4.54 percent, with points increasing to 1.05 from 0.94 for 80 percent loan-to-value ratio loans, the lowest 30-year average rate since November 19, 2010. TRD