Mortgage Applications Rebound in Weekly MBA Survey

Mar. 25, 2015--MBA Staff     
Mortgage applications posted a healthy increase from one week earlier as key interest rates fell to their lowest level since February, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending March 20. 

The Market Composite Index increased by 9.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased by 9 percent compared to the previous week. 

The Refinance Index increased by 12 percent from the previous week. The refinance share of mortgage activity increased to 61 percent of total applications from 59 percent the previous week.

The seasonally adjusted Purchase Index increased by 5 percent from one week earlier to its highest level since January. The unadjusted Purchase Index increased by 5 percent compared to the previous week and was 3 percent higher than the same week one year ago.

The FHA share of total applications decreased to 13.3 percent this week from 14.3 percent last week. The VA share of total applications decreased to 10.1 percent this week from 10.3 percent last week. The USDA share of total applications decreased to 0.8 percent this week from 0.9 percent last week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.90 percent, its lowest level since February, from 3.99 percent, with points decreasing to 0.37 from 0.40 (including origination fee) for 80 percent loan-to-value ratio 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 $417,000) decreased to 3.89 percent, its lowest level since January, from 3.94 percent, with points decreasing to 0.25 from 0.33 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by FHA decreased to 3.71 percent, its lowest level since January, from 3.74 percent, with points increasing to 0.21 from 0.12 (including origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.22 percent, its lowest level since February, from 3.28 percent, with points decreasing to 0.28 from 0.34 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 adjustable-rate mortgages decreased to 2.97 percent, its lowest level since January, from 2.99 percent, with points decreasing to 0.38 from 0.43 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The ARM share of activity increased to 5.8 percent of total applications.

The survey covers more than 75 percent of all U.S. retail and consumer direct residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.