Mortgage applications increased 4.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 27, 2015. The Market Composite Index, a measure of mortgage loan application volume, increased 4.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased five percent compared with the previous week. The Refinance Index increased four percent from the previous week. The seasonally adjusted Purchase Index increased six percent from one week earlier. The unadjusted Purchase Index increased six percent compared with the previous week and was eight percent higher than the same week one year ago.
“There was a broad based increase in mortgage applications last week relative to the week prior. The increase in purchase volume was led by a nearly six percent increase in both conventional and government markets, perhaps signaling that households are finally ready to begin the homebuying season,” said Lynn Fisher, MBA’s vice president of research and economics.
The refinance share of mortgage activity decreased to 60 percent of total applications from 61 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.6 percent of total applications.
The FHA share of total applications decreased to 12.8 percent this week from 13.3 percent last week. The VA share of total applications increased to 10.5 percent this week from 10.1 percent last week. The USDA share of total applications remained unchanged from last week at 0.8 percent.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.89 percent from 3.90 percent, with points decreasing to 0.36 from 0.37 (including the origination fee) for 80 percent loan-to-value ratio (LTV) 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) increased to 3.90 percent from 3.89 percent, with points increasing to 0.34 from 0.25 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.73 percent from 3.71 percent, with points decreasing to 0.13 from 0.21 (including the 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 3.21 percent from 3.22 percent, with points increasing to 0.29 from 0.28 (including the origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.
The average contract interest rate for 5/1 ARMs decreased to 2.93 percent from 2.97 percent, with points increasing to 0.41 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
