Mortgage application volume increased 15.1% from one week earlier, and with interest rates still falling, even higher refinance demand is probable in the short term, according to the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ended Feb. 28 found that the refinance index increased 26%
The refinance share of mortgage activity increased to 66.2% of total applications from 60.8% the previous week.
"The
For the first time ever on March 3, the 10-year Treasury yield broke below 1%. Overnight, the yield fell as low as 0.933%, before rising again above 1%. But when the market opened on March 4, it was at 0.997% and dropped to 0.952% in the first half-hour of trading.
Based on a
"We are now at the start of the spring home buying season. While purchase applications were down a bit for the week, they are still up about 10% from a year ago. The next few weeks are key in whether these low mortgage rates bring in more buyers, or if economic uncertainty causes some home shoppers to temporarily delay their search," Fratantoni said.
The seasonally adjusted purchase index decreased 3% from one week earlier, while the unadjusted purchase index increased 11% compared with the previous week and was 10% higher than the same week one year ago.
Adjustable-rate mortgage activity increased to 6.4% form 5.3%, while the share of Federal Housing Administration-insured loan applications decreased to 9.3% from 10.5% the week prior.
The share of applications for Veterans Affairs-guaranteed loans decreased to 10.5% from 11.8% and the U.S. Department of Agriculture/Rural Development share decreased to 0.4% from 0.5% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to 3.57% from 3.73%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $510,400), the average contract rate remained unchanged at 3.72%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.74% from 3.84%. For 15-year fixed-rate mortgages decreased to 3.03% from 3.18%. The average contract interest rate for 5/1 ARMs decreased to 3.12% from 3.21%.