If you recall from last week, the Mortgage Bankers Association didn't have a lot of good news. They reported a 5.6% decline in the Market Composite Index for the week ending 4/22, driven by a mild decline in refinancing (0.6%) and a steep decline in first time applications (13.6%). Most of the decline was laid at the feet of the FHA, which recently increased premiums. The average contract interest rate for a 30-year fixed-rate mortgage slipped to 4.80%.
Things substantially improved for the week ending 4/29. The Market Composite Index increased 4.0%, with the Refinance Index increasing 6.0% and the Purchase Index increasing 0.3%. Refinancing accounted for 62.7% of total applications (up 110 bps from last week) and adjustable-rate mortgages accounted for 6.7% of mortgage activity (up 20 bps). And the average contract interest rate for 30-year fixed-rate mortgages? That fell to 4.75%.