Mortgage applications decreased by 2.5% on a seasonally-adjusted basis from one week earlier for the week ending March 1st, 2019, according to the Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey. (The results for the week ending February 22, 2019, included an adjustment for Presidents’ Day.)
On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, rose by 10% from the previous week. The Refinance Index fell 2% over the same period. The seasonally-adjusted Purchase Index fell 3%, while the unadjusted Purchase Index rose 11%.
“Slightly higher mortgages rates last week led to a decrease in application volume. Furthermore, the average loan size for purchase applications increased to a record high, led by a rise in the average size of conventional loans. This suggests that move-up and higher-end buyers have so far become a greater share of the spring market,” says Mike Fratantoni, MBA’s senior vice president and chief economist. “Overall, conventional purchase loans are up 2.1 percent relative to last year, indicating that homebuyers continue to be inspired by the stable rate environment and the modest increase in housing supply.”
The refinance share of mortgage activity fell to 40.0% of total applications from 40.4% the previous week. The adjustable-rate mortgage (ARM) share of activity rose to 7.4%. The FHA share rose to 10.3% from 10.2%, the VA share fell to 10.4% from 10.7%, and the USDA share remained unchanged at 0.6%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) rose to 4.67% from 4.65%. Points for 80% loan-to-value ratio (LTV) loans rose to 0.44 from 0.42. (All 80% LTV loan reports include the origination fee.) The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) rose to 4.41% from 4.40%. Points for 80% LTV loans fell to 0.25 from 0.29, and the effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose to 4.66% from 4.64%. Points for 80% LTV loans remained unchanged at 0.48 and the effective rate increased from last wee.
The average contract interest rate for 15-year fixed-rate mortgages rose to 4.08% from 4.00%. Points for 80% LTV loans rose to 0.46 from 0.38, and the effective rate increased from last week.
The average contract interest rate for 5/1 ARMs rose to 4.08% from 3.95%. Points for 80% LTV loans fell to 0.39 from 0.40, and the effective rate increased from last week.
