Mortgage applications rose last week as purchase demand strengthened, even as market volatility pushed mortgage rates higher.
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Mortgage applications rose last week as purchase demand strengthened, even as market volatility pushed mortgage rates higher, the Mortgage Bankers Association said in its latest weekly survey report.
The MBA’s Market Composite Index, which tracks mortgage loan application volume, increased 3.2 percent week over week, with the purchase index rising 7.8 percent. The unadjusted purchase index was 11 percent higher than the same week a year ago.
MBA researchers said that the average interest rate for conforming 30-year fixed-rate mortgages rose from 6.09 percent to 6.19 percent, while jumbo loans increased to 6.26 percent from 6.16 percent, as financial markets reacted to geopolitical turmoil and broader economic uncertainty.
The refinance share of mortgage activity declined to 57.8 percent of total applications from 59.8 percent the previous week, while the adjustable-rate mortgage share rose to 8.9 percent. Meanwhile, the FHA share of applications increased to 17.1 percent from 15.8 percent, the VA share fell to 16.1 percent from 17.1 percent, and the USDA share remained unchanged at 0.4 percent.
Mike Fratantoni
“Financial markets were volatile last week amid the ongoing turmoil in the Middle East,” MBA SVP and Chief Economist Mike Fratantoni said in the report. “Mortgage rates increased on net over the week, while refinance volume was roughly flat.”
The increase follows a strong week for mortgage demand in late February, when applications surged as borrowers sought to take advantage of 30-year mortgage rates briefly falling below 6 percent, according to the MBA’s previous weekly report.
Mortgage rate data from Optimal Blue showed similar movements in borrowing costs across the market.
Optimal Blue’s mortgage rate index, which tracks rate lock data from lenders, placed the average 30-year conforming mortgage rate at 6.06 percent as of March 10, slightly below the MBA’s survey figure for the same period. Because it reflects actual loan pricing rather than survey responses, the index often offers a closer look at where mortgage rates are trending in the broader market and a real-time snapshot of borrowing costs available to homebuyers.
Even with rates moving higher in recent days, stronger housing inventory in some markets has helped keep purchase demand ahead of last year’s pace.
Email AJ LaTrace
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