Mortgage apps down as purchase activity increases

by MPA26 Mar 2014
Mortgage applications were down last week even as purchase activity increased, according to data released today.

The Mortgage Bankers Association’s Market Composite Index, which measures loan application volume, dropped 3.5% on a seasonally adjusted basis from the previous week. On an unadjusted basis, the index was down 3%. The Refinance Index dropped 8% from the previous week.

The seasonally adjusted Purchase Index, meanwhile, was up 3% -- a spike driven mainly by a 4% increase in conventional purchase applications, according to the MBA. The unadjusted Purchase Index was up 3% from the previous week and down 17% from the same week a year ago.

The refinance share of mortgage activity dropped to 54% of total applications – the lowest level since April of 2010. The adjustable-rate mortgage share held steady at 8%.

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances rose to 4.56%, the highest level since January, from the previous week’s 4.50%. the average rate for 30-year FRMs with jumbo loan balances increased to 4.45% from the previous week’s 4.39%.

The average rate for 15-year FRMs increased to 3.62% the highest level since January, from the previous week’s 3.52%.

The average rate for 5/1 ARMs rose to 3.22%, also the highest level since January, from 3.09% the previous week.


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