The composite mortgage applications index from the Mortgage Bankers Association jumped 14.6 percent on a seasonally adjusted basis last week. The healthy rebound, led by refinancing contracts, was the first increase in a month.
For the week ending Feb. 26, the MBA’s purchase index rose 9 percent, while the refinance index surged 17.2 percent, both seasonally adjusted.
The four week moving average is down 2.7 percent for the purchase index, while the average is up 1.8 percent for the refinance Index.
“Mortgage applications rebounded last week, particularly refinances, as rates dropped back below 5 percent,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Purchase activity remains subdued, with application volumes remaining within the narrow range seen in the last few months.”
The refinance share of mortgage activity climbed to 69.1 percent of total applications, from 68.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 4.8 percent, from 4.7 percent of total applications.
The average interest rate for 30-year fixed-rate mortgages on contracts fell to 4.95 percent from 5.03 percent, with points decreasing to 0.99 from 1.34 (including the origination fee) for 80 percent loan-to-value (LTV) loans.
For 15-year fixed-rate mortgages, the interest rate decreased to 4.27 percent from 4.35 percent, with points increasing to 1.36 from 1.31.
“This is the lowest 15-year fixed-rate observed in the survey since the week ending November 27, 2009,” the MBA said.
The MBA survey covers more than 50 percent of all U.S. retail residential mortgage applications.
