Changes in average contract interest rates were mixed for different mortgage types
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The activity share of refinance applications declined further during the week ending Feb. 23 amid a slight increase in overall mortgage application volume, according to the Weekly Mortgage Applications Survey released by the Mortgage Bankers Association.
The MBA’s Market Composite Index, which measures loan application volume, gained 2.7% on a seasonally adjusted basis but fell 6% on an unadjusted basis. The results include an adjustment for the Presidents' Day holiday.
The Refinance Index slipped 1% from the previous period. The Purchase Index increased 6% on a seasonally adjusted basis and slipped 1% on an unadjusted basis. The unadjusted Purchase Index was 3% higher compared to the year-ago period.
Refinances accounted for 41.8% of total mortgage applications. This compares to a 44.4% share in the prior period when refinances fell to their lowest level since July from 46.5%. The adjustable-rate mortgage (ARM) share of activity increased to 6.7% from 6.4%.
The share of FHA applications climbed to 10.3% from 9.9%, while the VA share increased to 10.7% from 10%. The USDA share of total applications remained unchanged at 0.8% from the prior survey.
Changes in average contract interest rates were mixed for different mortgage types during the period.
The average rate for 30-year fixed-rate mortgages with conforming loan balances remained unchanged at 4.64%, with points increasing to 0.63 from 0.61, for 80% loan-to-value ratio loans. Rates for 30-year fixed-rate mortgages with jumbo loan balances averaged 4.57%, down from 4.62%. Points increased to 0.51 from 0.50.
The average rates for 30-year fixed-rate mortgages backed by the FHA and 15-year fixed-rate mortgages rose to their highest levels since April 2011. The FHA-backed mortgages had an average rate of 4.68%, up from 4.58%, with points increasing to 0.75 from 0.71. The average for 15-year fixed-rate mortgages increased was 4.07%, up from 4.02%, with points decreasing to 0.59 from 0.66.
The average rate for 5/1 ARMs increased to its highest level since February 2011, 3.85%, from 3.72%, with points increasing to 0.59 from 0.39.
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Mortgage apps decline as rates increase
Refi app activity share sinks as total volume ticks up
