More people are seeking out mortgage applications, according to Mortgage Bankers Association (MBA) data for the week ending March 22.
The Market Composite Index rose by 8.9 percent on a seasonally-adjusted basis from one week earlier, while the unadjusted index saw a nine percent upswing. The seasonally-adjusted Purchase Index increased six percent from one week earlier and the unadjusted index took a seven percent rise—the latter was also four percent higher than the same week one year ago. The Refinance Index increased 12 percent from the previous week and the refinance share of mortgage activity increased to 40.4 percent of total applications from 39.2 percent the previous week.
The seasonally-adjusted Purchase Index increased six percent from one week earlier and the unadjusted index took a seven percent rise—the latter was also four percent higher than the same week one year ago.
Among the federal programs, the FHA share of total applications decreased to 9.3 percent from 10.4 percent the week prior and the VA share of total applications decreased to 10.4 percent from 10.6 percent while the USDA share of total applications remained unchanged from 0.6 percent.
“The spring buying season is off to a strong start,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Thanks to an unexpectedly large drop in mortgage rates following last week’s FOMC meeting, purchase applications jumped 6 percent and refinance applications surged over 12 percent. Rates dropped across all loan types, and the 30-year fixed-rate mortgage is now more than 70 basis points below last November’s peak. The average loan size increased once again to new highs for both purchase and refinance loans, as borrowers with—or seeking—larger loans tend to be more reactive to the drop in rates.”