Home loan application activity continued to move higher last week, though the speed slowed substantially as financial markets turned volatile and mortgage rates returned up from their recent lows. The Home Loan Bankers Association (MBA) reported a boost of 3.2% on a seasonally changed basis for the week ending March 6.
Today it was purchase demand doing the heavy lifting. The seasonally changed Purchase Index increased 7.8% from one week earlier and was 11% greater than the same week one year back. MBA kept in mind that purchase activity continues to track ahead of in 2015’s pace as improving stock levels support more deals.
Refinance activity was mainly flat by contrast. The Refinance Index edged just 0.5% greater from the previous week but still remained 81% higher than the same week one year earlier.
According to MBA Chief Economist Mike Fratantoni, markets were unsettled by geopolitical advancements during the week, pressing longer-term interest rates greater. The average 30-year adhering mortgage rate rose back above 6% after briefly dipping listed below that limit in recent weeks.
The structure of activity moved a little away from refinances. The re-finance share of total applications decreased to 57.8% from 59.8% the previous week, while ARM share increased to 8.9%. FHA share rose to 17.1%, VA share decreased to 16.1%, and USDA share remained unchanged at 0.4%.
Home Mortgage Rate Summary:
- 30yr Fixed: 6.19% (from 6.09%)|Points: 0.58 (from 0.52)
- 15yr Fixed: 5.54% (from 5.49%)|Points: 0.68 (from 0.60)
- Jumbo 30yr: 6.26% (from 6.16%)|Points: 0.30 (from 0.31)
- FHA: 6.02% (from 5.97%)|Points: 0.70 (from 0.62)
- 5/1 ARM: 5.26% (from 5.32%)|Points: 0.64 (from 0.51)