MBA: Applications Showing Promise Edging Closer to Spring Home-Buying Season
WASHINGTON, D.C. — Mortgage applications rose 3.6% from for the week ending February 15, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
The Market Composite Index, which gauges mortgage loan application volume, rose 3.6% on a seasonally adjusted basis and 7% on an unadjusted basis. That ends a 4-week decline.
“Mortgage rates held steady on mixed economic news, as core inflation remained firm, while retail sales in December were much weaker than expected,” said Joel Kan, MBA’s Associate Vice President of Industry Surveys and Forecasts. “However, overall application activity picked up over the week.”
“After four consecutive declines, purchase applications increased almost 2% over the week and 2.5% compared to a year ago – showing some promise as we edge closer to the spring home-buying season.”
The Refinance Index increased 6%, while the seasonally adjusted Purchase Index gained 2%. The unadjusted Purchase Index rose 7% and was 3% higher than the same week one year ago.
The refinance share of mortgage activity fell marginally to 41.7% of total applications from 41.8%. The share for adjustable-rate mortgage (ARM) activity was unchanged at 7.7% of total applications.
The Federal Housing Administration (FHA) share of total applications declined to 10.2% from 11.0%. The Veterans Administration (VA) share of total applications fell to 10.1% from 10.9%. The Department of Agriculture (USDA) share rose marginally to 0.7% from 0.6%.
Averages for Interest Rates H/T: MBA
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) rose to 4.66% from 4.65%, with points decreasing to 0.42 from 0.43 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The effective rate remained unchanged.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) gained from 4.48% to 4.56%, with points decreasing to 0.23 from 0.27 (including the origination fee) for 80% LTV loans.
The effective rate increased.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose from 4.61% to 4.68%, with points rising to 0.58 from 0.53 (including the origination fee) for 80% LTV loans.
The effective rate increased.
The average contract interest rate for 15-year fixed-rate mortgages fell was 4.04%, with points decreasing to 0.44 from 0.48 (including the origination fee) for 80% LTV loans.
The effective rate decreased.
The average contract interest rate for 5/1 ARMs increased to 4.00% from 3.97%, with points decreasing to 0.24 from 0.42 (including the origination fee) for 80% LTV loans.
The effective rate decreased.
About the MBA Weekly Mortgage Applications Survey
The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey covers over 75% of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990.
Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.
