On an unadjusted basis, the market composite index, which measures mortgage loan application volume, went down by 15% from the week prior while the refinance index rose by 3%.
The seasonally adjusted purchase index increased by 10% from the week prior – its highest since May 2010 – while the unadjusted purchase index went down by 14%. The unadjusted purchase index was 6% higher year over year.
A combination of low borrowing costs and steady job growth is likely driving the increase, said MBA economist Joel Kan as reported by Bloomberg.
Refi activity also declined to 42.1% of total mortgage applications from 43.2% the previous week; the adjustable-rate mortgage (ARM) share of total mortgage activity dropped to 7.4% of total applications.
applications increased to 10.6% of total applications from the prior week’s 10.5%; VA
applications rose to 11.1% from 10.8% the previous week and USDA applications stayed the same from the week before at 0.8%.
Mortgage applications slide
Mortgage app fraud increases for fifth consecutive month
Mortgage applications increased 7.1% on a seasonally adjusted basis for the week ending June 2 including an adjustment for Memorial Day, according to the Mortgage Bankers Association's (MBA’s) weekly mortgage applications survey.