Mortgage applications rose by 2.3% on a seasonally-adjusted basis for the week ending March 8th, 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 3% over the previous week. The Refinance Index fell 0.2% over the same period. The seasonally-adjusted Purchase Index rose 4%, while the unadjusted Index rose 6%.
“Led by a 5.5 percent increase in FHA loan applications, purchase activity picked up last week and was almost 2 percent higher than a year ago,” says Joel Kan, associate vice president of economic and industry forecasting at the Mortgage Bankers Association. “Purchase applications have now increased year-over-year for four weeks, which signals healthy demand entering the busy spring buying season. However, the pick-up in the average loan size continues, with the average balance reaching another record high. With more inventory in their price range compared to first-time buyers, move-up and higher-end buyers continue to have strong success finding a home.”
The refinance share of mortgage activity fell to 38.6% of total applications, down from 40.0% the previous week. The adjustable-rate mortgage (ARM) share fell to 7.2% of total applications. The FHA share rose to 10.4% from 10.3%, the VA share fell to 10.2% from 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 4.64% from 4.67% the previous week. Points for 80% loan-to-value ratio (LTV) loans rose to 0.47 from 0.44. (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) rose to 4.45% from 4.41%. Points for 80% LTV loans rose to 0.34 from 0.25, and the effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell to 4.61% from 4.66%. Points for 80% LTV loans fell to 0.47 from 0.48, and the effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages fell to 4.02% from 4.08%. Points for 80% LTV loans fell to 0.44 from 0.46, and the effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs rose to 4.09% from 4.08%. Points for 80% LTV loans fell to 0.26 from 0.39, and the effective rate decreased from last week.
