NEW YORK - Mortgage application volume soared 18.0% in the week ended June 8, to its highest level since 2009, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey.
The refinance index increased more than 19%, while the purchase index jumped around 13%.
"Mortgage application volume increased sharply last week. The increase was accentuated due to the comparison to the week including Memorial Day, but the level of refinance and total market activity is the highest since the spring of 2009," said Michael Fratantoni, MBA's Vice President of Research and Economics. "Refinance volume increased as borrowers were able to lock in at mortgage rates below 4 percent, and purchase application volume was its highest level in over six months. HARP volume has been steady in recent weeks at about 28 percent of refinance applications."
Refinances were 79% of applications, up from 78% the previous week, while adjustable-rate mortgages remained around 5% of volume.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.88% percent from 3.87%.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.23% percent from 3.20%.