Mortgage applications last week increased 3.6% from a week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 15, 2019.
The Market Composite Index, a measure of mortgage loan application volume, increased 3.6% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 7% compared with the previous week. The Refinance Index increased 6% from the previous week. The seasonally adjusted Purchase Index increased 2% from one week earlier. The unadjusted Purchase Index increased 7% compared with the previous week and was 3% higher than the same week one year ago.
“Mortgage rates held steady on mixed economic news, as core inflation remained firm, while retail sales in December were much weaker than expected. However, overall application activity picked up over the week,” said Joel Kan, MBA’s Associate Vice President of Industry Surveys and Forecasts. “After four consecutive declines, purchase applications increased almost 2% over the week and 2.5% compared to a year ago – showing some promise as we edge closer to the spring home buying season.”
Added Kan, “Most rates remained close to 10-month lows, which allowed some borrowers with an incentive to refinance to capitalize. The 30-year fixed rate was essentially unchanged at 4.66%.”
The refinance share of mortgage activity decreased to 41.7% of total applications from 41.8% the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 7.7% of total applications.
The FHA share of total applications decreased to 10.2% from 11.0% the week prior. The VA share of total applications decreased to 10.1% from 10.9% the week prior. The USDA share of total applications increased to 0.7% from 0.6% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 4.66% from 4.65%, with points decreasing to 0.42 from 0.43 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) increased to 4.56% from 4.48%, with points decreasing to 0.23 from 0.27 (including the origination fee) for 80% 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 4.68% from 4.61%, with points increasing to 0.58 from 0.53 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.04% from 4.04%, with points decreasing to 0.44 from 0.48 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 4.00% from 3.97%, with points decreasing to 0.24 from 0.42 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
