Refinance

There was a huge rise in mortgage refinance application activity due to the large drop in interest rates following last week's Federal Open Market Committee meeting.

If mortgage rates fall below 4%, it could more than double the dollar volume of agency mortgages exposed to refinancing incentive, analysts at Keefe, Bruyette & Woods found.

Freddie Mac reduced its 2019 origination projection in its latest monthly forecast, but strong coinciding housing numbers could suggest a future upward revision.

The Federal Reserve decision to shift into Treasuries could pull rates down and increase the prepayment speeds on mortgage-backed securities.

While fading 9.53% annually, February mortgage delinquencies posted a month-over-month increase for the first time in 12 years, according to Black Knight.

The home purchase loan share is up and closing times are down ahead of an expected healthy spring buying season, and declining mortgage rates could be a reason, according to Ellie Mae.

Fannie Mae estimates the average 30-year fixed-rate mortgage to hold at 4.4% through 2019 and 2020 due to the overall slowdown in the economy, according to the March housing forecast.

Mortgage applications increased last week but unlike the prior period, it was driven by refinance volume as interest rates fell to a one-year low, according to the Mortgage Bankers Association.

Mortgage lenders are optimistic about their business prospects during this spring's home purchase season even with the negative sentiments about demand in the previous three months, Fannie Mae said.

Purchase application volume increased, both week-to-week and year-over-year, as high-end buyers as well as those that need government loans entered the market, according to the Mortgage Bankers Association.