New applications for residential loans dipped last week thanks to a drop in refinance activity. Refinance share thinned to a more than eight-year low.
A seasonally adjusted less than 1 percent decline from the previous week was recorded for the Market Composite Index for the week ended March 24.
Even without applying any seasonal adjustments, the index,
a measure of mortgage loan application volume, still moved down by less than 1 percent.
Those findings were culled from the Weekly Mortgage Applications Survey published by the Mortgage Bankers Association. More than 75 percent of all residential residential mortgage applications are reportedly covered by the survey.
MBA said applications for refinances fell 3 percent from the week ended March 17. Meanwhile, refinance share was 44.0 percent — the thinnest share since October 2008. Refinance share was
45.1 percent a week earlier and 52.4 percent a year earlier.
The report indicated that applications for loans to finance a home purchase rose a seasonally adjusted 1 percent from the previous report.
Foregoing seasonal adjustments, purchase business was up 2 percent and climbed 4 percent from the week ended March 25, 2016.
At
10.8 percent, the share of applications that were for loans insured by the Federal Housing Administration was thinner than 10.9 percent in the last report and 11.5 percent in the same week during 2016.
MBA
said applications for mortgages guaranteed by the Department of Veterans Affairs made up 11.0 percent of the weekly total. VA share widened from 10.1 percent the previous week but was substantially more narrow than 12.9 percent a year ago.
Jumbo mortgage rates were 7 basis points less than conforming rate in the latest report. The spread was slightly wider than 6 BPS in the last report but thinned from a negative 12 BPS in report from the same week in 2016.
Applications for adjustable-rate mortgages accounted for 8.5 percent of overall applications. ARM share
was more narrow than 9.0 percent in the prior report but was significantly more broad than 4.9 percent a year prior.
