Mortgage applications rose by 18.6% on a seasonally-adjusted basis from one week earlier for the week ending March 29th, 2019, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, rose by 18% from the previous week. The Refinance Index rose by 39% over the same period, up to its highest level since January 2016. The seasonally-adjusted Purchase Index rose 3%, while the unadjusted Purchase Index rose 4% from the previous week.
“There was a tremendous surge in overall applications activity, as mortgage rates fell for the fourth week in a row – with rates for some loan types reaching their lowest levels since January 2018. Refinance borrowers with larger loan balances continue to benefit, as we saw another sizeable increase in the average refinance loan size to $438,900 – a new survey record,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “We had expected factors such as the ongoing strong job market and favorable demographics to help lift purchase activity this year, and the further decline in rates is providing another tailwind. Purchase applications were almost 10% higher than a year ago.”
The refinance share of mortgage activity rose to 47.4% of total applications, up from 40.4% the previous week. The adjustable-rate mortgage (ARM) share of activity rose to 9.5% of total applications. The FHA share fell to 8.8% from 9.3%, the VA share remained unchanged at 10.4%, 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) fell to 4.36%, down from 4.45% the previous week. Points for 80% loan-to-value ratio (LTV) loans rose to 0.44 from 0.39. (All 80% LTV loan reports include the origination fee.) The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) fell to 4.21% from 4.35%. Points for 80% LTV loans fell to 0.25 from 0.27, and the effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell to 4.41% from 4.48%. Points for 80% LTV loans remained unchanged at 0.48, and the effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages fell to 3.78% from 3.87%. Points for 80% LTV loans fell to 0.40 from 0.47, and the effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs remained unchanged at 3.77%. Points for 80% LTV loans rose to 0.38 from 0.30, and the effective rate increased from last week.
