The volume of mortgage applications reversed a three-week losing streak to rise 1.5 percent on a seasonally adjusted basis last week.  The Mortgage Bankers Association said its Market Composite Index for the week ended April 7 was also higher on an unadjusted basis, up 3 percent.

Refinancing applications, which had declined in each of the previous three weeks, was unchanged from the week ended March 31.  Refinancing applications had a 41.6 percent share of all applications submitted during the week, the lowest rate since September 2008, and down from 42.6 percent a week earlier.

The seasonally adjusted Purchase Index rose 3 percent and the unadjusted index was up 5 percent compared to a week earlier.  The average loan size for purchase mortgage applications set a new survey high at $318,700.  The Purchase Index was also 3 percent higher than the same week in 2016.

Refi Index vs 30yr Fixed

Purchase Index vs 30yr Fixed

Applications for FHA mortgages made up 10.7 percent of the total, down from 11.1 percent the previous week.  The VA share rose to 11.3 percent from 11.1 percent and USDA's portion was unchanged at 1.0 percent.

Interest rates, both contract and effective, were mixed during the week.  The average contract rate for 30-year fixed-rate mortgages (FRM) with conforming loan balances of $424,100 or less was 4.28 percent with 0.38 point.  The previous week the rate was 4.34 percent with 0.31 point.  The effective rate decreased.

The contract rate for jumbo 30-year FRM, loans with balances greater than $424,100, was unchanged at 4.24 percent.  Points increased to 0.28 from 0.24, pulling the effective rate higher.

Thirty-year FRM backed by the FHA had a rate of 4.14 percent, down one basis point from a week earlier.  Points dipped to 0.29 from 0.32, and the effective rate declined.

The interest rate for 15-year FRM was 3.51 percent, down from 3.57 percent the previous week.  Points fell to 0.35 from 0.38.  The effective rate was also down.

The rate for 5/1 adjustable rate mortgages (ARM) was unchanged at 3.33 percent.  Points rose to 0.17 from 0.13 and the effective rate moved higher.  The ARM share of applications was also unchanged, remaining at 8.5 percent for the third consecutive week.

MBA's Weekly Mortgage Applications Survey, which has been conducted since 1990, covers 75 percent of the U.S. retail residential market.  Survey respondents include mortgage bankers, commercial banks, and thrifts.  Base period and value for the application volume indexes is March 16, 1990=100.  Interest rate data is based on loans with an 80 percent loan-to-value ratio and points that include the origination fee.