Skip to main content

MBA Reports 17 Percent Refi App Surge on Rate Dip

NationalMortgageProfessional.com
Mar 09, 2011

Mortgage applications increased 15.5 percent from one week earlier, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending March 4, 2011. The Market Composite Index, a measure of mortgage loan application volume, increased 15.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 16.1 percent compared with the previous week. Last week's Freddie Mac Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) dipped below five percent to 4.87 percent, with an average 0.7 point for the week ending March 3, 2011, down from the previous week when it averaged 4.95 percent. The previous week did not include a holiday adjustment for Presidents' Day. The Refinance Index increased 17.2 percent from the previous week and was the highest Refinance Index observed since the week ending Jan. 14, 2011. The seasonally adjusted Purchase Index increased 12.5 percent from one week earlier and was the highest Purchase Index recorded this year. The unadjusted Purchase Index increased 14.3 percent compared with the previous week and was 14.3 percent lower than the same week one year ago. "Taking into account typical seasonal patterns, purchase applications rose to their highest level of the year last week. On an unadjusted basis, purchase application activity is the highest since last May," said Michael Fratantoni, MBA's vice president of research and economics. "An improving job market is beginning to pave the way for an improving housing market. Additionally, mortgage interest rates remained below five percent for a second week, maintaining affordability for buyers and leading to an increase in refinance applications." The four week moving average for the seasonally adjusted Market Index is up 2.7 percent. The four week moving average is up 1.2 percent for the seasonally adjusted Purchase Index, while this average is up 3.6 percent for the Refinance Index. The refinance share of mortgage activity increased to 65.5 percent of total applications from 64.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to six percent from 5.5 percent of total applications from the previous week. The average contract interest rate for 30-year fixed-rate mortgages increased to 4.93 percent from 4.84 percent, with points decreasing to 0.87 from 1.29 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week. The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 4.17 percent, with points increasing to 1.15 from 1.07 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week. For more information, visit www.mortgagebankers.org.
Published
Mar 09, 2011
Top Texas Originator Sees No Surrender To 2023

Big cities will determine the battle

Industry News
Jan 26, 2023
There’s Good & Bad News On The Horizon

There will be a real estate slump, but the big cities are coming out much better

Industry News
Jan 26, 2023
Housing Prices Across Texas Likely Hobbled In 2023

But you’re getting a lot less for $1 million

Industry News
Jan 23, 2023
UWM Adds 'Control Your Price' To 'Game On' Pricing

New program provides 125 basis points in price enhancements for loan orignators.

Industry News
Jan 11, 2023
Rocket Pro TPO Relieves Brokers Of Credit Fee Burden

Will provided free credit reports to brokers if they get their loan closed with the Detroit lender.

Industry News
Jan 10, 2023
Former Employees Sue Rocket Mortgage Over OT Pay

Claim company failed to properly calculate & pay OT for working beyond 40 hours a week.

Operations
Jan 09, 2023