Mortgage application activity edged ever-so-slightly greater last week, with the Home Loan Bankers Association (MBA) reporting an increase of 0.4% on a seasonally changed basis for the week ending February 20.
Refi applications continue to do the heavy lifting. The Refinance Index increased 4% from the previous week and was 150% greater than the same week one year earlier. Traditional re-finance applications increased 5% for the week, while VA re-finances jumped 26%, as rates declined to their most affordable levels considering that September 2022.
Significantly, rates have actually moved even lower this week and have actually held these new multi-year lows in extremely stable fashion. If history is any guide, this need to cause an even greater refi index next week.
Purchase need moved lower, falling 5% on a seasonally adjusted basis, though activity remains 12% higher than the exact same week one year earlier.
Joel Kan, MBA’s Vice President and Deputy Chief Financial expert, associated the modest increase in overall activity to decreasing Treasury yields, which assisted push the 30-year fixed rate to its least expensive level in a number of months.
The structure of activity shifted further toward refinances. The re-finance share of total applications increased to 58.6% from 57.4% the previous week, while ARM share held consistent at 8.2%. FHA share reduced to 16.1%, VA share rose to 18.7%, and USDA share remained the same at 0.4%.
Home Mortgage Rate Summary:
- 30yr Fixed: 6.09% (from 6.17%)|Points: 0.53 (from 0.56)
- 15yr Repaired: 5.48% (from 5.50%)|Points: 0.70 (from 0.73)
- Jumbo 30yr: 6.20% (from 6.21%)|Points: 0.42 (from 0.27)
- FHA: 5.97% (from 5.99%)|Points: 0.65 (the same)
- 5/1 ARM: 5.23% (from 5.29%)|Points: 0.41 (from 0.62)