The volume of refinance applications increased for the first time in six weeks, while purchase applications were at their highest point in nearly four months, leading to a 4.8% seasonally adjusted increase in overall application volume, according to the Mortgage Bankers Association.
The Refinance Index increased by 4% from the previous week, but the market share of refi applications declined to 71.2% from 71.9%. The seasonally adjusted Purchase Index increased by 7.2% from the previous week (and is at its highest point since the week of Dec. 11, 2011), and on an unadjusted basis they are up 2.4% from the same week last year.
"Home purchase applications for conventional loans are now about 10% above last year's level," said Michael Fratantoni, MBA's vice president of research and economics. "Applications for government loans increased by more than 10% over the week, for both purchase and refinance, likely spurred by borrowers seeking to apply before scheduled increases in FHA mortgage insurance premiums at the beginning of April."
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased by seven basis points from the previous week to 4.16%. The average contract interest rate for 30-year Federal Housing Administration-insured loans also declined by seven basis points to 3.89%.
The rate for 30-year FRMs with jumbo loan balances fell by eight basis points to 4.46%. The average contract interest rate for 15-year FRMs declined 10 basis points to 3.40%.
