Total mortgage demand was surprisingly up 2.5% for the week ending April 29th, according to the latest data from the Mortgage Bankers Association…(MBA)
- REFIS: The Refinance Index was up 0.2% for the week but was still down 71% when compared to the same time last year.
- PURCHASES: The Purchase Index was up 4.0% for the week but was still down 11% when compared to the same time last year.
NOTE: The refinance share of mortgage activity decreased to 33.9% of total applications from 35.0% the previous week
Continuing with the surprises, mortgage rates actually saw a decline for the week…
- 30-YR FIXED: The average contract interest rate fell 1 basis point to 5.36%, this is still up 218 basis points from one year ago.
- 15-YR FIXED: The average contract interest was unchanged at 4.68%, this is up 186 basis points from one year ago.
ARMS: The 5/1 ARM average contract interest rate fell 3 basis points to 4.25%, this is up This, however, did not incentivize buyers as activity was unchanged from the previous week at 9.3% of total applications.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said in a statement, “The purchase market remains challenged by low levels of housing inventory and rapid home-price gains, as well as the affordability hit from higher mortgage rates that are forcing prospective buyers to factor in higher monthly payments. The ARM share remained unchanged at around 9 percent, which is well below the 30 percent mark observed in the mid-2000s.”