MBA Survey

Mortgage applications increase in latest Mortgage Bankers Association weekly survey

The Market Composite Index, a measure of mortgage loan application volume, increased 0.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 2 percent compared with the previous week. The Refinance Index increased 0.1 percent from the previous week and was 7 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 5 percent compared with the previous week and was 1 percent higher than the same week one year ago.

"Mortgage rates jumped last week on market expectations of stronger economic growth and higher inflation. The 30-year fixed rate experienced its largest single-week increase in almost a year, reaching 3.23 percent - the highest since July 2020," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "The overall share of refinances declined for the fourth consecutive week, and conventional refinance applications fell more than 2 percent to the lowest level in four months. Government refinance applications historically lag the more rate-sensitive movements of conventional applications, and that was true last week, as both FHA and VA refinancing volumes increased."

Added Kan, "The housing market is entering the busy spring buying season with strong demand. Purchase applications increased, with a rise in government applications—likely first-time buyers—pulling down the average loan size for the first time in six weeks."

The refinance share of mortgage activity decreased to 67.5 percent of total applications from 68.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 2.9 percent of total applications.

The FHA share of total applications increased to 12.1 percent from 11.2 percent the week prior. The VA share of total applications increased to 12.3 percent from 11.9 percent the week prior. The USDA share of total applications increased to 0.4 percent from 0.3 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increased to 3.23 percent from 3.08 percent, with points increasing to 0.48 from 0.46 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) increased to 3.33 percent from 3.23 percent, with points decreasing to 0.41 from 0.43 (including the origination fee) for 80 percent 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 3.19 percent from 3.00 percent, with points decreasing to 0.30 from 0.33 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 2.64 percent from 2.56 percent, with points decreasing to 0.39 from 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 2.84 percent from 2.83 percent, with points increasing to 0.58 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

—Mortgage Bankers Association (MBA)