Mortgage application volume decreased by 2% on a seasonally adjusted basis for the week ending April 1 — although purchase business increased to the highest level of the year, according to figures compiled by the Mortgage Bankers Association.
The trade group's Refinance Index decreased 6.2% from the previous week, while the seasonally adjusted Purchase Index increased by 6.7%. The unadjusted purchase index was down nearly 17% from the same period in 2010.
MBA's Government Purchase Index increased 10.3% to its highest level since May 7, 2010, on a seasonally adjusted basis. MBA vice president of research Michael Fratantoni noted that the big jump in government lending was driven by borrowers who likely were "motivated to apply before a scheduled increase in FHA insurance premiums." But he noted that purchase volumes are still low by historical standards, at levels last seen in 1997.
The market share of refi applications fell to 61.2% from 64.3%. This is the lowest refi share since May 2010. MBA tracks activity through its proprietary application index.
The average contract interest rate for 30-year fixed-rate mortgages increased 1 basis point to 4.93% from 4.92%, with points decreasing to 0.70 from 0.83 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract rate for 15-year FRMs decreased 2 basis points to 4.14% from 4.16%. Points increased to 1.09 from 0.99.
