WASHINGTON, D.C. — Mortgage applications rose 5.3% from for the week ending February 22, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
These results include an adjustment for Presidents’ Day, a national holiday.
The Market Composite Index, a measure of mortgage loan application volume, decreased 3% from the previous week on an unadjusted basis.
The Refinance Index increased 5%, after gaining 6.4%.
The seasonally adjusted Purchase Index gained 6%, up from 1.7%. The unadjusted Purchase Index fell 1% compared with the previous week, but still was 3% higher than the same week one year ago.
“Mortgage rates were little changed last week, but as we anticipated, homebuyers are responding favorably to this more stable rate environment,” said Mike Fratantoni, MBA Senior Vice President and Chief Economist.
“Purchase applications for both conventional and government loans rose last week, with the government gain led by a 14 percent increase in applications for VA purchase loans.”
The refinance share of mortgage activity decreased to 40.4% of total applications from 41.7% during the week ending February 15. The adjustable-rate mortgage (ARM) share of activity decreased to 7.3% of total applications.
“Refinance application volume increased as well, with the index reaching its highest level in a month,” Mr. Fratantoni added. “Borrowers with larger loans tend to be more responsive for a given drop in rates, and competition for these loans is fierce.”
“Therefore, it was not surprising to see the average rate for a 30-year fixed jumbo loan drop to its lowest level since January 2018.”
The share of total applications for the Federal Housing Administration (FHA) remained unchanged at 10.2%. The VA share of total applications increased to 10.7% from 10.1%. The USDA share of total applications fell marginally from 0.7% to 0.6%.