More people applied for mortgages June 1-5 than May 25-29.
The Market Composite Index is a measure of mortgage loan application volume. The index rose 20% from the last week in May to the first week in June, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
Refinancing increased from 59.5% to 61.3% of all applications. The Refinancing Index was up 11% from late May to early June and 80% from last June. The Purchase Index rose 15% during that time period and 13% from a year ago.
“Fueled again by low mortgage rates, pent-up demand from earlier this spring, and states reopening across the country, purchase mortgage applications and refinances both increased. The recovery in the purchase market continues to gain steam, with the seasonally adjusted index rising to its highest level since January. Purchase activity increased for the eighth straight week and was a notable 13% higher than a year ago,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Refinances moved higher for the first time in nearly two months, with both conventional and government applications rising and the overall index coming in 80% above year-ago levels.”
From late May to early June, FHA applications increased from 11.3% to 11.5% of total applications; VA applications increased from 12% to 12.3%; and USDA applications decreased from 0.7% to 0.6%.