The total volume of mortgage applications increased 2.7% compared to the previous week, according to the seasonally adjusted index of the Bankers Association. Volume is 8% higher than the same week one year ago.
Application purchases pushed up, up 4% for the week and 5% every year. May is one of the strongest months for historical home sales, especially for large families who want to rise. This is because they want to move during the summer school vacation.
While the supply of homes for sale in the lower class market is low, there is an increase in the supply of upscale homes for sale, so buyers have more choices. Prices also rose slightly, although still higher in most of the main housing markets compared to last year.
The average loan size for purchasing applications reaches a survey high, which is more evidence that most home purchases are currently on the up market, not entry-level.
"Even with slower price appreciation on the market with higher prices, home prices are still increasing enough to push the average loan size higher," said Joel Kan, an MBA economist. "With the increase in purchasing activity and the movement of mortgage rates largely unchanged, the refinancing section of the application was at its lowest level since last November."
Applications to refinance home loans are 1% higher for the week and 13% higher than last year, when interest rates were 37 basis points higher. The share of refinancing mortgage activity decreased to 37.9% from the total application from 38.8% the previous week.
The average contract interest rate for a fixed 30-year mortgage with an appropriate loan balance ($ 484,350 or less) drops to 4.41% from 4.42%, with points increasing to 0.47 from 0.46 (including fees origination) for loans with a 20% reduction in payments.
Mortgage rates fell earlier this week, as fears of a trade war with China increased. The exchange rate can move even lower, if selling on the stock market continues and investors move to a relatively safe bond market. The 10-year Treasury yield continues to follow a loose mortgage rate. https://bit.ly/2VybQH8