Mortgage applications increased 1.6% last week, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 15, 2019.
The Market Composite Index, a measure of mortgage loan application volume, increased 1.6% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 2% compared with the previous week. The Refinance Index increased 4% from the previous week. The seasonally adjusted Purchase Index increased 0.3% from one week earlier. The unadjusted Purchase Index increased 1% compared with the previous week and was 1% higher than the same week one year ago.
“Mortgage rates declined once again, as concerns about the slowing global economy and status of Brexit continued to drive investors’ demand for U.S. Treasuries, ultimately pushing yields lower,” said Joel Kan, associate vp of economic and industry forecasting. “Rates for most loan types were at their lowest levels in over a year, with the 30-year fixed mortgage rate falling to 4.55% – its lowest reading since last February. Although lower rates sparked a 3.5% increase in refinance applications, purchase activity was up only slightly last week and from a year ago.”
Added Kan, “Entry-level housing supply remains weak and is likely hindering some would-be first-time buyers from finding a home. This – along with faster growth in the higher price tiers – is why the average loan application size has risen to a new high for three straight weeks.”
The refinance share of mortgage activity increased to 39.2% of total applications from 38.6% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.1% of total applications. The FHA share of total applications remained unchanged from 10.4% the week prior. The VA share of total applications increased to 10.6% from 10.2% the week prior. The USDA share of total applications remained unchanged from 0.6% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.55% from 4.64%, with points decreasing to 0.42 from 0.47 (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 $484,350) decreased to 4.37% from 4.45%, with points decreasing to 0.23 from 0.34 (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 decreased to 4.59% from 4.61%, with points increasing to 0.50 from 0.47 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.97% from 4.02%, with points decreasing to 0.40 from 0.44 (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 3.99% from 4.09%, with points increasing to 0.29 from 0.26 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
