Of total applications, the refi share of mortgage activity shrank to 60.4% from 61.3% the prior week. The adjustable-rate mortgage (ARM) share of activity increased to 3.9% of total applications.
Kan explained that the uptick in purchase applications was the result of Memorial Day this year being compared to a non-holiday week, as well as the surge in mortgage requests seen last May when pandemic-induced lockdowns started to lift.
“The average loan size on a purchase application edged down to $407,000, below the record $418,000 set in February, but still far above 2020’s average of $353,900,” Kan said. “Home-price growth continues to accelerate, driven by favorable demographics, the recovering job market and economy, and housing demand far outpacing supply.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) dwindled from 3.17% to 3.15%, down to 0.34 points from 0.39 points (including the origination fee) for 80% loan-to-value ratio (LTV) loans.