Mortgage application volume increased for the first time in four weeks in the week ended February 26 but it was only a marginal increase. The Mortgage Bankers Association (MBA) said its composite market index, a measure of the volume of mortgage applications, rose 0.5% on a seasonally adjusted basis from the previous week. On an unadjusted basis, the index increased 2 percent from the previous week.

The refinancing index was 0.1 percent more than during the week ended February 19 and was up 7% compared to the same week in 2020. The refinancing share of mortgage activity decreased to 67.5% of total applications, from 68 , 5%.

The seasonally adjusted purchasing index increased by 2 percent and was 5 percent higher on an unadjusted basis. Volume increased 1 percent from the same week last year.

Refi index vs 30 years Fixed

Buy index vs 30 years fixed

The share of FHA in total claims increased from 11.2% to 12.1% and the share of VA increased from 11.9% to 12.3%. USDA stock rose 0.4% from 0.3%. The origination balances of all mortgages and purchase loans decreased from the previous week, the former from $ 344,800 to $ 336,200 and the latter from $ 418,000 to $ 412,300.

“Mortgage rates jumped last week on market expectations for stronger economic growth and higher inflation. The 30-year fixed rate saw its biggest single-week increase in nearly a year. year, reaching 3.23% – the highest since July 2020, “said Joel Kan, associate vice president of economic and industrial forecasting at the MBA. “The overall share of refinancing declined for the fourth week in a row, and traditional refinancing requests fell more than 2% to their lowest level in four months. week, as both FHA and VA refinance volumes increased. ”

Kan added, “The housing market is enter the busy spring shopping season with high demand. Purchase requests have increased, with an increase in government requests – likely from first-time buyers – lowering the average loan size for the first time in six weeks. ”

The average contractual interest rate for 30-year fixed-rate mortgages (FRMs) with balances below the compliant limit of $ 548,250 rose to 3.23 percent from 3.08 percent and points to 0.48 from 0.46. The effective rate was 3.37 percent.

The rate for giant 30-year FRM, loans with balances above the compliant limit, averaging 3.33%, an increase of 10 basis points, with points dipping to 0.41 from 0.43. The effective rate rose to 3.45%.

The FHA-backed 30-year FRM rate averaged 3.19% with 0.30 points versus 3.00% with 0.33 points the previous week. The effective rate was 3.28%.

The 15-year FRM had an average rate of 2.64%, up 8 basis points week-over-week. The points fell from 0.40 to 0.39 and the effective rate rose to 2.74%.

The average contractual interest rate of ARM 5/1 was 2.84% versus 2.83%, with points going from 0.36 to 0.58. The effective rate has increased from the previous week, but MBA has not provided a rate. The share of variable rate mortgage (ARM) activity increased to 2.9% of total applications.

The MBA Weekly Mortgage Applications Survey has been conducted since 1990 and covers over 75 percent of all personal loan applications in the United States. The base period and value of all indices are March 16, 1990 = 100 and interest rate information is based on loans with 80% loan-to-value ratio and points that include origination charges .

MBA’s latest forbearance and call volume survey found a small increase in the total number of forbidden loans during the week from February 15 to February 21. The percentage of loans in plans increased by 1 basis point to 5.23% of all active loans. MBA estimates that 2.6 million homeowners are now forborne. Of these loans, 15.6% are at the initial stage of the forbearance plan, 81.9% are in an extension and 2.5% have returned to the program.

The share of Fannie Mae and Freddie Mac (GSE) loans in forbearance remained stable compared to the previous week at 2.97%. The share of Ginnie Mae (FHA and VA) loans increased by 3 basis points to 7.35% and there was a 9 basis point increase in the share of renegotiated loans managed for the banking book and securities of private label (PLS) at 9.03%. The percentage of forbeard loans managed by independent mortgage bank (IMB) services increased by 3 basis points to 5.57% and the percentage of depository services increased by 1 basis point to 5.29%.

“A slight increase in new forbearance requests, coupled with a decrease in outflows to match a trough in the survey, resulted in an increase in the overall share of forbearance loans for the first time in five weeks,” said Mike Fratantoni, Senior Vice President and Chief Economist of MBA. “The largest increase in the share of forbearance is in portfolio and PLS loans, due to increases in both Ginnie Mae buyouts and other portfolio / PLS loans.”

Fratantoni added, “The winter storm that hit Texas and other states caused temporary disruptions to maintenance call centers, but these centers quickly returned to full capacity. ”

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