Mortgage applications increased 5.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Feb. 22, 2019. This week’s results include an adjustment for the Washington's Birthday (Presidents’ Day) holiday.
The Market Composite Index, a measure of mortgage loan application volume, increased 5.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index decreased 3 percent compared with the previous week. The Refinance Index increased 5 percent from the previous week. The seasonally adjusted Purchase Index increased 6 percent from one week earlier. The unadjusted Purchase Index decreased 1 percent compared with the previous week and was 3 percent higher than the same week one year ago.
“Mortgage rates were little changed last week, but as we anticipated, homebuyers are responding favorably to this more stable rate environment,” said Mike Fratantoni, senior vice president and chief economist at the MBA. “Purchase applications for both conventional and government loans rose last week, with the government gain led by a 14 percent increase in applications for Veterans Affairs purchase loans. Refinance application volume increased as well, with the index reaching its highest level in a month. Borrowers with larger loans tend to be more responsive for a given drop in rates, and competition for these loans is fierce. Therefore, it was not surprising to see the average rate for a 30-year fixed jumbo loan drop to its lowest level since January 2018.”
The refinance share of mortgage activity decreased to 40.4 percent of total applications from 41.7 percent the previous week. The adjustable-rate mortgage share of activity decreased to 7.3 percent of total applications.
The FHA share of total applications remained unchanged from 10.2 percent the week prior. The Veterans Affairs share of applications increased to 10.7 percent, from 10.1 percent the week prior. The Department of Agriculture share of applications decreased to 0.6 percent from 0.7 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.65 percent from 4.66 percent, with points remaining unchanged at 0.42 (including the origination fee) for 80 percent loan-to-value ratio 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 $484,350) decreased to 4.40 percent from 4.56 percent, with points increasing to 0.29 from 0.23 (including the origination fee) for 80 percent loan-to-value ratio loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the Federal Housing Administration decreased to 4.64 percent from 4.68 percent, with points decreasing to 0.48 from 0.58 (including the origination fee) for 80 percent loan-to-value loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.00 percent from 4.04 percent, with points decreasing to 0.38 from 0.44 (including the origination fee) for 80 percent loan-to-value loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 adjustable rate mortgages decreased to 3.95 percent from 4.00 percent, with points increasing to 0.4 from 0.24 (including the origination fee) for 80 percent loan-to-value loans. The effective rate increased from last week.
