The seasonally adjusted Mortgage Bankers Association index that tracks purchase applications hit a high for the year during the week ending March 4.
On an unadjusted basis, the purchase index reached a high not seen since last May, according to Michael Fratantoni, MBA’s vice president of research and economics.
On a seasonally adjusted basis, the MBA’s purchase index rose 12.5% compared to the previous week. But the trade group noted that the comparison does not include an adjustment for the Presidents’ Day holiday. On an unadjusted basis, purchase apps were up 14.3% week-to-week but were 14.3% lower than the same week a year ago.
Overall, apps surged by 15.5% on a seasonally adjusted basis during the week ending March 4. On an unadjusted basis, apps were up 16.1% week-to-week.
Refinancing as well as purchase apps saw a notable uptick during the week ending March 4, rising 17.2% in the week as the level of applications in this category ascended to a high not seen since Jan. 14. Refis represented 65.5% of apps during the week ending March 4, up slightly from 64.9% of apps the week before.
According to the MBA, the average 30-year rate during the week ending March 4 was up slightly at 4.93% with an average 0.87 of a point (compared to 4.84% with an average 1.29 points). The average 15-year rate during the week remained at 4.17% although average points increased to 1.15 from 1.07, increasing the effective rate for these loans. (All points include the origination fee and are for 80% loan-to-value ratio mortgages.)
The four-week moving average for refi apps as of the week ending March 4 was up 3.6%. Purchases on a four-week moving average basis were up 1.2% and overall, on a seasonally adjusted basis, the four-week moving average basis for apps was 2.7%.
Adjustable-rate mortgages during the week ending March 4 represented just 5.5% of apps, down from 6% the previous week.
