The Mortgage Bankers Association reported last week that its seasonally adjusted Market Composite Index moved up by 5.3 percent week-over-week. This increase came after a decline of 5.9 percent the week prior.
The MBA’s Mortgage Composite Index, which covers both purchase and refinance applications had been on a downward trend in recent week as rates remained almost a full percentage point higher on a year-over-year basis. However, the most recent week saw things turn around, as the purchase index improved considerably week-over-week, moving up by 9 percent with seasonal adjustment taken into account. Without seasonal adjustment, the composite index was up by 6 percent from the previous week, while the purchase index rose by 10 percent. Despite this week’s upticks, the purchase index is still 16 percent lower compared to the previous year.
Despite the fact that mortgage rates retreated lately, refinance activity continued to slow down, with the overall share of refinance activity dropping from 50 percent to 49 percent, the first time in quite a while this metric has been at less than 50 percent. The refinance index, however, moved up by 2 percent, following the previous week’s 7 percent drop.
The average interest rate on conforming 30-year fixed-rate mortgage products dropped six basis points from 4.49 percent to 4.43 percent; this would refer to rates on loans with a balance of $417,000 or less. The average rate on 30-year fixed jumbo mortgages slipped from 4.37 percent to 4.29 percent, while the average rate on 15-year fixed mortgages lost one basis point, dipping from 3.53 percent to 3.52 percent.
30-year FHA-backed fixed mortgages were also down week-over-week, easing from 3.26 percent to 3.21 percent. 5/1 adjustable-rate mortgages, on the other hand, fell from 3.26 percent to 3.21 percent.