The strong uptick in mortgage applications during the week ended February
28 faded quickly and the Mortgage Bankers Association (MBA) said today that
application volume has resumed the downward trajectory that has prevailed since
late last fall. According to MBA's Weekly Mortgage Applications Survey the
Market Composite Index, a measure of mortgage volume decreased 2.1 percent on a
seasonally adjusted basis from the week before and down 1 percent on an unadjusted
The Refinance Index fell 3 percent week-over-week and refinancing
garnered a 57 percent share of mortgage activity, down from 57.7 the previous
week. The refinancing share is off 6
percentage points from the level at the beginning of the year and is at the
lowest point since April 2011.
Refinance Index vs 30 Yr Fixed
The seasonally adjusted Purchase Index was 1.0 percent lower and the
unadjusted Purchase Index was 1.0 percent higher than in the week ended
February 28. The unadjusted index was 17
percent below that of the same week in 2013.
Purchase Index vs 30 Yr Fixed
Both contract and effective interest rates rose for all mortgage products
during the week. The average contract
rate for conventional (loan balances under $417,000) 30-year fixed-rate
mortgages (FRM) was 4.52 percent with 0.29 point. The previous week the rate was 4.47 percent
with 0.28 point.
The average rate for the jumbo version of the 30-year FRM (balances in
excess of $417,000) was 4.41 percent, an increase of 4 basis points from the
week before. Points were unchanged at
30-year FRM had an average rate of 4.18 percent with 0.21 point. This was an increase from the prior level of
4.13 percent with 0.13 point.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.53 percent from 3.52 percent.
Points increased to 0.28 from 0.18.
mortgages (ARMs) had an 8 percent share of mortgage applications which has been
essentially unchanged for the last eight weeks.
The average contract
interest rate for 5/1 ARMs increased to 3.18 percent from 3.09 percent, with points decreasing to 0.36 from 0.38.
survey covers over 75 percent
of all U.S. retail residential mortgage
applications, and has been conducted since 1990.
Respondents include mortgage bankers,
commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100
and interest rates are based on loans with an 80 percent loan-to-value
ratio. Points include the origination