Mortgage Applications Down Third Week in MBA Weekly Survey

Mortgage applications fell for the third consecutive week as key interest rates held steady, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending March 31.

The Market Composite Index decreased by 1.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 1 percent compared to the previous week.

The Refinance Index decreased by 4 percent from the previous week. The refinance share of mortgage activity decreased to 42.6 percent of total applications from 44.0 percent the previous week.

The seasonally adjusted Purchase Index increased by 1 percent from one week earlier. The unadjusted Purchase Index increased by 1 percent compared to the previous week and was 8 percent higher than the same week one year ago.

The average loan size for purchase applications reached a survey high at $318,200.

The FHA share of total applications increased to 11.1 percent from 10.8 percent the week prior. The VA share of total applications increased to 11.1 percent from 11.0 percent the week prior. The USDA share of total applications remained unchanged at 1.0 percent from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.34 percent from 4.33 percent, with points decreasing to 0.31 from 0.43 (including origination fee) for 80 percent loan-to-value ratio 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 $424,100) decreased to 4.24 percent from 4.26 percent, with points decreasing to 0.24 from 0.26 (including 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 FHA decreased to 4.15 percent from 4.24 percent, with points decreasing to 0.32 from 0.36 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 3.57 percent, with points decreasing to 0.38 from 0.43 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 adjustable-rate mortgages increased to 3.33 percent from 3.30 percent, with points decreasing to 0.13 from 0.28 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The ARM share of activity remained unchanged at 8.5 percent of total applications.

The survey covers more than 75 percent of all U.S. retail and consumer direct residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.