Residential Real Estate News
Mortgage Applications in U.S. Uptick in Mid-March
According to the Mortgage Bankers Association's latest Weekly Mortgage Applications Survey for the week ending March 10, 2023, U.S. mortgage applications increased 6.5 percent from one week earlier.
The Market Composite Index, a measure of mortgage loan application volume, increased 6.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 7 percent compared with the previous week.
The Refinance Index increased 5 percent from the previous week and was 74 percent lower than the same week one year ago. The seasonally adjusted Purchase Index increased 7 percent from one week earlier. The unadjusted Purchase Index increased 8 percent compared with the previous week and was 38 percent lower than the same week one year ago.
"Treasury yields declined late last week, as market concerns over bank closures and the potential for broader ripple effects triggered a flight to safety in Treasury bonds. This decline pushed mortgage rates for all loan types lower, with the 30-year fixed rate decreasing to 6.71 percent," said Joel Kan, MBA's Vice President and Deputy Chief Economist. "Home-purchase applications increased for the second straight week but remained almost 40 percent below last year's pace. While lower rates should buoy housing demand, the financial market volatility may cause buyers to pause their decisions."
Added Kan, "Refinance activity remained more than 70 percent behind last year's level, as rates are still more than two percentage points higher than a year ago. The dip in rates did bring some borrowers back as evidenced by the 5 percent increase in refinance applications last week."
The refinance share of mortgage activity decreased to 28.2 percent of total applications from 28.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.5 percent of total applications.
The FHA share of total applications increased to 12.9 percent from 12.8 percent the week prior. The VA share of total applications decreased to 11.9 percent from 12.0 percent the week prior. The USDA share of total applications remained unchanged at 0.5 percent from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 6.71 percent from 6.79 percent, with points decreasing to 0.79 from 0.80 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $726,200) decreased to 6.39 percent from 6.49 percent, with points increasing to 0.61 from 0.59 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.58 percent from 6.56 percent, with points decreasing to 1.20 from 1.21 (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 decreased to 6.14 percent from 6.25 percent, with points decreasing to 0.77 from 1.01 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 5.69 percent from 5.75 percent, with points decreasing to 0.87 from 0.95 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
