March saw mortgage application activity decrease, with a 1.0 percent week-over-week dip reported for the week ending March 25, 2016 and a 3.3 percent decline for the week ending March 18, 2016. Average contract interest rates saw some slight fluctuation week-to-week, but remain low.
This information comes from the two most recent Market Composite Index reports from the Mortgage Bankers Association.
Market Composite Index results for week ending March 25, 2016
Despite the slight slowdown overall, the share of purchase applications increased 2 percent week-over-week for the week ending March 25, 2016. The refinance share on the other hand, declined 3 percent from the previous week.
On an unadjusted basis, the Purchase Index increased 3 percent compared with the previous week and was 21 percent higher than the same week one year ago. This could indicate that despite the mortgage market’s recent declines, things are improving year-to-year.
The refinance share of mortgage activity decreased to 52.4 percent of total applications from 53.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 4.9 percent of total applications.
For the same week, the FHA share of total applications decreased to 11.5 percent from 11.8 percent the week prior. The VA share of total applications increased to 12.9 percent from 12.6 percent and USDA applications remained unchanged from 0.9 percent.
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) increased to 3.94 percent from 3.93 percent.
The average contract interest rate for 30 year fixed rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.82 percent from 3.85 percent.
The average contract interest rate for 30 year mortgages backed by the FHA increased to 3.76 percent from 3.74 percent.
The average contract interest rate for 15 year fixed rate mortgages increased to 3.19 percent from 3.18 percent.
The average contract interest rate for 5/1 ARMs decreased to 3.07 percent from 3.13 percent.
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Market Composite Index results for week ending March 18, 2016
For the week ending March 18, 2016, the seasonally adjusted Purchase Index decreased 1 percent from one week earlier. The unadjusted Purchase Index decreased 1 percent compared with the previous week and was 25 percent higher than the same week one year ago. The Refinance Index decreased 5 percent from the previous week.
For the same week, refinance activity decreased to 53.9 percent of total applications from 55.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 4.9 percent of total applications.
For that week, the FHA share of total applications increased to 11.8 percent from 11.7 percent the week prior. The VA share increased to 12.6 percent from 12.3 percent. The share of USDA loan applications increased to 0.9 percent from 0.8 percent.
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.93 percent from 3.94 percent the previous week.
The average contract interest rate for 30 year fixed rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.85 percent from 3.86 percent.
The average contract interest rate for 30 year FHA mortgages decreased to 3.74 percent from 3.77 percent.
The average contract interest rate for 15 year fixed rate mortgages decreased to 3.18 percent from 3.22 percent.
The average contract interest rate for 5/1 ARMs decreased to 3.13 percent from 3.23 percent.
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Tags: application trends
