Mortgage applications inch up despite refi dip

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Mortgage applications increased 1.5% from one week earlier even though refinancing activity continues to shrink, according to the Mortgage Bankers Association.

The MBA's Weekly Mortgage Applications Survey for the week ending April 7 found that the refinance index remained unchanged from the previous week.

There was a 3% increase on a seasonally adjusted basis in the purchase index over last week, while the unadjusted purchase index increased 5% and was 3% higher than the same week one year ago.

The refinance share of mortgage activity decreased to 41.6% of total applications from 42.6% the previous week.

Adjustable-rate mortgage applications remained unchanged at 8.5% of the total, while the Federal Housing Administration share decreased 4 basis points to 10.7% from the week prior.

The VA share of total applications increased 2 basis points to 11.3% and the USDA share remained unchanged at 1%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to 4.28% from 4.34%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate remained unchanged at 4.24%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased 1 basis point to 4.14%, while for 15-year fixed-rate mortgages, the average decreased to 3.51% from 3.57%.

The average contract interest rate for 5/1 ARMs remained unchanged at 3.33%.

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Mortgage applications Refinance Mortgage rates Underwriting Purchase Mortgage Bankers Association FHA The VA