WASHINGTON, D.C. (June 8, 2016) - Mortgage applications increased 9.3% from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending June 3, 2016. This week's results include an adjustment to account for the Memorial Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 9.3% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 13% compared with the previous week.

The Refinance Index increased 7% from the previous week. The seasonally adjusted Purchase Index increased 12% from one week earlier. The unadjusted Purchase Index decreased 12% compared with the previous week and was 6% lower than the same week one year ago.

The refinance share of mortgage activity decreased to 53.8% of total applications from 54.3% the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.0% of total applications.

The FHA share of total applications increased to 13.0% from 12.5% the week prior. The VA share of total applications decreased to 11.5% from 12.0% the week prior. The USDA share of total applications remained unchanged from 0.7% the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.83% from 3.85%, with points decreasing to 0.33 from 0.36 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) remained unchanged at 3.81%, with points decreasing to 0.25 from 0.35 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.71% from 3.65%, with points decreasing to 0.23 from 0.26 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.11% from 3.12%, with points decreasing to 0.35 from 0.40 (including the origination fee) for 80%LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.96% from 3.00%, with points decreasing to 0.29 from 0.44 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.