Refinancing apps drop, purchase apps on the rise

by Ryan Smith31 Mar 2016
Refinancing applications were down while purchase applications rose this week, according to new data from the Mortgage Bankers Association.

Applications as a whole decreased, with the MBA’s Market Composite Index dropping 1% on a seasonally adjusted basis from the prior week. The Refinance Index dropped 3% from the previous week, while the seasonally adjusted Purchase Index increased 2%. On an unadjusted basis, the Purchase Index rose 3% week over week and was 21% higher than the same week last year, according to the MBA.

The refinance share of mortgage activity dropped to 52.4% of total mortgage applications this week from last week’s 53.9%. The adjustable-rate mortgage share held steady at 4.9% of total applications.

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances crept upward to 3.94% from last week’s 3.93%. The average rate for 30-year FRMs with jumbo loan balances, meanwhile, decreased from 3.85% to 3.82%.

The average rate for loans backed by the Federal Housing Administration increased to 3.76% from the previous week’s 3.74%.

Average rates for 5/1 ARMs were down, dropping from 3.13% to 3.07%, according to the MBA.

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