An increase in the weekly volume of purchase-money applications was more than offset by a reduction in the number of mortgage refinance applications completed.
Compared to one week previous, the Market Composite Index moved down less than a seasonally adjusted 2 percent during the week that ended on March 31.
The index, which is
a measure of mortgage loan application volume, slipped just a percent versus the prior week when seasonal adjustments are excluded.
The Mortgage Bankers Association reported the index Wednesday based on its Weekly Mortgage Applications Survey. MBA says the survey covers more than three-quarters of all residential retail loan applications.
A 4 percent decline from the week ended March 24 was recorded for refinance applications. The latest week’s refinance share was 42.6 percent, thinning from 44.0 percent a week earlier
and 54.5 percent a year earlier.
MBA reported that applications for loans to finance a home purchase increased a seasonally adjusted 1 percent from the last report. On an unadjusted basis, purchase business was still up 1 percent and climbed 8 percent from the week ended April 1, 2016.
Out of all applications, 11.1 percent were for mortgages insured by the Federal Housing Administration. FHA share widened from 10.8 percent the prior week but slipped from 11.3 percent a year prior.
Also coming in at 11.1 percent during the latest seven-day period was the share of applications for loans guaranteed by the Department of Veterans Affairs. VA share was slightly broader than 11.0 percent
the previous week but thinner than 12.2 percent this week last year.
Applications for adjustable-rate mortgages accounted for 8.5 percent of total business, the same share as in the last report. ARM share,
though, widened from 4.7 percent in the same week during 2016.
The jumbo-conforming spread widened to a negative 10 basis points from a negative 7 BPS in the last report. Jumbo interest rates were also 10 BPS less than conforming rates 12 months ago.
