The volume of
mortgage applications increased during the week ended February 28 for the first
time since late January. This good news was
muted slightly by the fact that the previous week had been a holiday for many with
government offices and schools closed.
Bankers Association said its Market Composite Index increased 9.4 percent on a
seasonally adjusted basis from the week ended February 21 and 11 percent on an
unadjusted basis. The seasonally
adjusted Purchase Index was 9 percent higher than the previous week but MBA
noted that week was not adjusted to account for the President's Day holiday. The seasonally adjusted Purchase Index during
the most recent week was 6 percent above the level during the last non-holiday
week which ended February 14. The
unadjusted Purchase Index was 19 percent lower than during the same week in
Purchase Index vs 30 Yr Fixed
Index was up 10 percent from the holiday week but was 3 percent lower than two
weeks earlier. Refinancing had a market
share of 57.7 percent compared to 58 percent the previous week, the lowest
since last September.
Refinance Index vs 30 Yr Fixed
contract and effective rates decreased last week for all mortgage products. The average contract interest rate for a
30-year fixed-rate mortgage (FRM) with a conforming loan balance of $417,000 or
less decreased to 4.47 percent with 0.28 point.
The previous week the rate was 4.53 percent with 0.31 point.
Jumbo 30-year FRM
(loan balances in excess of $417,000) had an average rate of 4.37 percent, 10
basis points below the average rate the previous week. Points increased to 0.20 from 0.13.
carrying FHA guarantees had an average rate of 4.13 percent with 0.13
point. The previous week the average rate
was 4.17 percent with 0.20 point.
The rate for
15-year FRM was 3.52 percent, down 4 basis points from the previous week. Points decreased to 0.18 from 0.28.
mortgages (ARM) held at an 8 percent share of mortgage applications for the
fifth straight week. The contract rate
for the most widely offered ARM, the 5/1 hybrid, was 3.09 percent with 0.38
point. The rate the previous week was
3.17 percent with 0.31 point.
Mortgage Application Survey has been conducted since 1990. It surveys mortgage bankers, commercial
banks, and thrifts and covers over 75 percent of U.S. retail residential mortgage
applications. Base period and value for
all indexes is March 16, 1990. Interest
rates are quoted for 80 percent loan-to-value ratio loans and points include
the origination fee.