More consumers applied to refinance their mortgages or purchase homes last week as mortgage rates hovered at 14-month lows, said J.P. Morgan Securities Inc.
J.P. Morgan’s index of applications to refinance mortgages rose about 4.6 percent to 166.6 in the week ended May 26 from 159.3 in the prior week. The index of applications to purchase homes gained 1.2 percent to 122.9 from 121.4.
Warmer weather, low mortgage rates and the advent of the spring housing season have prompted more consumers to apply for mortgage loans in the past few weeks. Applications to purchase homes accounted for 79 percent of all applications, while refinancing requests were 21 percent.
J.P. Morgan’s indexes measure the volume of applications to refinance mortgages or purchase new homes. The base period was the week ended Nov. 18, when the indexes were set at 100.
The company’s indexes are based on a weekly survey of major U.S. mortgage lenders, which account for 50 percent of all mortgage originations, the company said.
J.P. Morgan’s index of applications to refinance conventional loans-those no larger than $203,150-rose three percent to 175.9 in the week ended May 26, from 170.7 in the prior week. The purchase applications index gained more than 2 percent to 122.1 in the week from 119.3.
The volume of applications to refinance so-called whole loan mortgages-those that are larger than $203,150 or don’t fit other conventional standards-rose last week while applications to purchase non-conventional homes slipped.
