Although refinance activity dragged down overall mortgage applications, there was a weekly increase in applications to finance home purchases.
A seasonally adjusted 4 percent decline from one week earlier was recorded for the Market Composite Index for the week ended Feb. 19.
The index reportedly reflects
the volume of residential loan applications for more than three-quarters of all U.S. retail mortgage applications.
Without any seasonal adjustments, the index tumbled 12 percent from the previous report, according to the Mortgage Bankers Association — which reported the index as part of its Weekly Mortgage Applications Survey.
Refinance applications declined 8 percent on a seasonally adjusted basis in the week that included the Presidents’ Day holiday
from the last report. The decline reflected thinning in refinance share — to 61.0 percent from 64.3 percent in the week ended Feb. 12.
But a 2 percent increase was recorded for applications for purchase financing. Without any adjustments for seasonality, purchase activity slipped 4 percent from a week earlier but increased 27 percent from the same week in 2015.
In the government sector, Federal Housing Administration applications accounted for 12.0 percent of overall volume. FHA share was fatter than 11.5 percent the previous week.
Department of Veterans Affairs applications made up 13.0 percent of the latest week’s activity. VA share widened from 11.7 percent.
Applications for adjustable-rate mortgages represented 5.8 percent of total applications. ARM share thinned from
6.7 percent in the last report.
MBA reported that jumbo interest rates were five basis points less than conforming rates.
The jumbo-conforming spread was sliced from nine BPS in the prior report.
