Mortgage application volume elevated in the week ending March 20 as interest rates reached lows not seen since the beginning of the year.
The Mortgage Bankers Association's market composite index increased 9.5% on a seasonally adjusted basis from one week earlier. The
The refinance gauge for the weekly period of March 20 surged 12% compared to the prior week, while the purchase index rose 5%, the Washington-based trade group said.
Interest rates fell to its lowest levels since the first two months of 2015, the MBA said. The average contract interest rate for conforming 30-year fixed mortgages was down nine basis points, to 3.9%, a mark last seen in February. Meanwhile, the average 30-year fixed jumbo loan compressed five basis points, to 3.89%, a figure not recorded since January.
Additionally, 30-year fixed mortgages backed by the Federal Housing Administration declined three basis points, to 3.71%. The average contract interest rate for 15-year fixed mortgages dropped six basis points, to 3.22%.
The MBA survey covers over 75% of all U.S. retail residential mortgage applications.
