WASHINGTON — Mortgage applications increased 11.0% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Feb. 27.
The Market Composite Index, a measure of mortgage loan application volume, increased 11.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 12.1% compared with the previous week. The Refinance Index increased 14.3% from the previous week and was 109% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 6.1% from one week earlier. The unadjusted Purchase Index increased 8.9% compared with the previous week and was 10% higher than the same week one year ago.
“Mortgage applications increased last week, driven by continued strength in refinance activity, as mortgage rates stayed near their lowest level since 2022,” said Joel Kan, MBA’s vice president and deputy chief economist. “Refinance applications increased for the fourth straight week to the strongest pace since 2022, with conventional refinances up 20%. The increase in the average loan size for refinances indicates that more borrowers with larger loan sizes are seeking to lower their monthly payments. Purchase applications also moved higher, with the week’s pace almost 10% ahead of last year’s pace, as lower rates and growing levels of housing inventory continue to support homebuyer interest.”
The refinance share of mortgage activity increased to 59.8% of total applications from 58.6% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.8% of total applications.
FHA Share
The FHA share of total applications decreased to 15.8% from 16.1% the week prior. The VA share of total applications decreased to 17.1% from 18.7% the week prior. The USDA share of total applications remained unchanged at 0.4%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) was unchanged from last week at 6.09%, with points decreasing to 0.52 from 0.53 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate remained the same as last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) decreased to 6.16% from 6.20%, with points decreasing to 0.31 from 0.42 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA was unchanged from last week at 5.97%, with points decreasing to 0.62 from 0.65 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.49% from 5.48%, with points decreasing to 0.60 from 0.70 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 5.32% from 5.23%, with points increasing to 0.51 from 0.41 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.