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Mortgage Applications Rise 2.7 Percent as Rates Pause After Surge

Mortgage Applications Rise 2.7 Percent as Rates Pause After Surge
(Dreamstime/FlynT)

Wednesday, 28 February 2018 12:42 PM

Mortgage demand rose last week as the 30-year mortgage interest rate stalled after a steady recent surge.

Mortgage applications increased 2.7 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending February 23, 2018. This week's results include an adjustment for the Washington's Birthday (Presidents' Day) holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 2.7 percent on a seasonally adjusted basis from one week earlier.

The refinance share of mortgage activity decreased to 41.8 percent of total applications from 44.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.7 percent of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) remained unchanged from last week at 4.64 percent.

The average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since April 2011, 4.07 percent, from 4.02 percent.

Interest rates have been on the rise since the start of this year, and were volatile last week, despite finally ending unchanged, CNBC.com reported.

"Rates moved higher last week as the minutes from the latest FOMC meeting indicated a positive view of the economy overall and firming inflation. Mortgage rates for three of the five loan types that we track in the survey increased over the week," CNBC cited Joel Kan, an MBA economist, as saying.

"The refinance share of all applications dropped to 41.8 percent, its lowest share since May 2017 as we move further into a purchase-dominated market."

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Mortgage demand rose last week as the 30-year mortgage interest rate stalled after a steady recent surge.
mortgage, applications, interest, rates, home, loan
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2018-42-28
Wednesday, 28 February 2018 12:42 PM
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