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The Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey found that mortgage applications are down 1.5 percent from last week. Freddie Mac also released the results of its Primary Mortgage Market Survey (PMMS), revealing that the average fixed mortgage rates moved just slightly lower following three consecutive weeks of increases.
The MBA’s market composite index, a measure of mortgage loan application volume, decreased 1.5 percent on a seasonally adjusted basis for May 13, 2015 to May 20, 2015, compared to last week, according to the survey data. The index decreased 2 percent compared with last week on an unadjusted basis. The refinance index increased 0.3 percent from the previous week. The seasonally adjusted purchase index decreased 4 percent, the lowest level since April. The unadjusted purchase index experience a 4 percent drop and was 11 percent higher than the same week one year ago.
"Mortgage rates increased last week, and Treasury rates increased to a recent high at mid-week before falling at the end of the week,” said Mike Fratantoni, MBA's chief economist. “Overall purchase activity fell for the week, along with conventional refinance volume, but government refinance volume increased. The level of purchase applications remained 11 percent higher than the same week last year, but the drop this week may indicate borrowers being wary of the recent run up in mortgage rates."
The Freddie Mac Primary Mortgage Market Survey (PMMS), found that 30-year fixed-rate mortgages (FRM) averaged 3.84 percent with an average 0.7 point for May 14, 2015 to May 21, 2015. This is a drop from last week’s average of 3.85 percent. The 30-year FRM averaged 4.14 percent one year ago at this time.
"Mortgage rates were little changed this week amid positive housing news. Housing starts surged 20.2 percent to a seasonally adjusted pace of 1.14 million units in April, the highest level since 2007,” said Len Kiefer, deputy chief economist at Freddie Mac.
According to the survey this week, the 15-year FRM averaged 3.05 percent with an average 0.6 point, down from last week’s average of 3.07 percent. The 15-year FRM averaged 3.25 percent one year ago at this time. With an average of 2.88 percent and an average 0.5 point, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) experienced a small decrease from last week’s average of 2.89 percent. A year ago, the 5-year ARM averaged 2.96 percent. With an average of 2.51 percent and an average 0.4 point, the 1-year Treasury-indexed ARM increased from 2.48 percent last week. At this time last year, the 1-year ARM averaged 2.43 percent.
“As homebuying season moves into full swing, home builders remain positive about home sales in the near future. Although the NAHB housing market index slipped 2 points to 54 in May it is still above 50, indicating that on balance builders remain optimistic about housing markets,” Kiefer said.
View the full MBA Weekly Mortgage Applications Survey at: MBA.org
View the full Primary Mortgage Market Survey at: FreddieMac.com
