The Mortgage Bankers Association (MBA) said today that mortgage applications for both purchases and refinancing grew during the week ended March 3.  The MBA's Market Composite Index, a combined measure of both types of activity, rose by 3.3 percent on a seasonally adjusted basis when compared to the previous week.  On an unadjusted basis the index was up 16 percent.  Results from the prior week included an adjustment to account for the Presidents' Day holiday.

The seasonally adjusted Purchase Index increased by 2 percent from the week ended February 24 while the unadjusted Purchase Index rose 15 percent.  Unadjusted, purchase activity was 4 percent higher than during the same week in 2016.  The average loan size for purchase applications reached a survey high at $313,300.

The Refinance Index bounced back to its highest level since December, increasing 5 percent week-over-week. The refinance share of applications increased to 45.4 percent of the total, from 45.1 percent the previous week, reversing a six-week decline.

Applications for adjustable-rate mortgages (ARMs) increased to a 7.7 percent share, its largest since October 2014.  FHA activity dipped to an 11.8 percent share, down from 12.3 percent a week earlier and the VA share was 11.6 percent, compared to 11.7 percent.  The USDA share of total applications was unchanged at 0.9 percent.

Mortgage interest rates rose on both a contract and an effective basis. The average contract interest rate for 30-year fixed-rate mortgages (FRM) with conforming loan balances of $424,100 or less increased to 4.36 percent from 4.30 percent.  Points rose to 0.44 from 0.38.

Jumbo 30-year FRM, loans with balances greater than $424,100, had an average rate of 4.27 percent, up 4 basis points from the previous week.  Points ticked up to 0.26 from 0.25.  

Thirty-year FRM backed by FHA had a contract rate of 4.18 percent with 0.32 point.  A week earlier the rate was 4.07 percent with 0.37 point.

The rate for 15-year FRM increased to 3.57 percent from 3.51 percent.  Points remained at 0.36.

The contract interest rate for 5/1 ARMs increased to 3.48 percent from 3.35 percent. Points dropped to 0.20 from 0.29.

MBA's Weekly Mortgage Applications Survey has been conducted since 1990.  It covers over 75 percent of all U.S. retail residential mortgage applications with respondents that include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100 and interest rate quotes presume loans with an 80 percent loan-to-value ratio and points that include the origination fee.