Application activity increases, led by uptick in refis

Mortgage application activity increased slightly from one week earlier, according to the Mortgage Bankers Association.

The MBA's Weekly Mortgage Applications Survey for the week ending June 16 found that total volume increased by 0.6% from the previous week. The improvement was driven by a 2% rise in the refinance index.

But the seasonally adjusted purchase index decreased 1% from one week earlier, while the unadjusted purchase index decreased 2% compared with the previous week and was 9% higher than the same week one year ago.

The refinance share increased to 46.6% of total applications from 45.4% the previous week.

Adjustable-rate loan application activity increased 1 basis point to 7.5%, while the Federal Housing Administration share decreased 11 basis points to 10.1%.

The VA share decreased 7 basis points to 10.4% and the USDA share decreased 1 basis point to 0.7%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged at 4.13%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate increased 2 basis points to 4.08%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased 4 basis points to 4.04%, while for 15-year fixed-rate mortgages, the average increased 3 basis points to 3.4%.

The average contract interest rate for 5/1 ARMs remained unchanged at 3.26%.