Mortgage applications increased 0.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 3, 2015. The Market Composite Index, a measure of mortgage loan application volume, increased 0.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased one percent compared with the previous week. The Refinance Index decreased three percent from the previous week. The seasonally adjusted Purchase Index increased seven percent from one week earlier, reaching its highest level since July 2013. The unadjusted Purchase Index increased seven percent compared with the previous week and was 12 percent higher than the same week one year ago.
“Purchase mortgage application volume last week increased to its highest level since July 2013, spurred on by still low mortgage rates and strengthening housing markets,” said Mike Fratantoni, MBA’s chief economist. “Purchase volume has increased for three straight weeks now on a seasonally adjusted basis.”
The refinance share of mortgage activity decreased to 57 percent of total applications, its lowest level since October 2014, from 60 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.5 percent of total applications.
The FHA share of total applications increased to 13.2 percent last week from 12.8 percent the week prior. The VA share of total applications increased to 10.7 percent last week from 10.5 percent the week prior. The USDA share of total applications remained unchanged at 0.8 percent from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.86 percent from 3.89 percent, with points decreasing to 0.27 from 0.36 (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) decreased to 3.81 percent, its lowest level since May 2013, from 3.90 percent, with points decreasing to 0.26 from 0.34 (including the 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 the FHA decreased to 3.69 percent from 3.73 percent, with points increasing to 0.18 from 0.13 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.15 percent from 3.21 percent, with points unchanged from 0.29 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 2.76 percent, its lowest level since May 2013, from 2.93 percent, with points increasing to 0.45 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
