HW Media connects and informs decision makers across the housing economy. Professionals rely on HW Media for breaking news, reporting, and industry data and rankings. Moving the Housing Market Forward.
Mortgage

Mortgage applications recover as winter storms pass

30-year fixed rate reached 3.23% – the largest single-week increase in almost a year

Mortgage applications recovered slightly from last week, increasing 0.5% for the week ending Feb. 26, 2021 according to the latest report from the Mortgage Bankers Association.

A giant dip in applications was reported following the devastating winter storms in Texas the week of Feb. 8, but a week of normalized weather brought numbers back up, according to Joel Kan, MBA’s associate vice president of economic and industry forecasting.

That is despite the fact that the 30-year fixed rate experienced its largest single-week increase in almost a year, reaching 3.23%.

The refinance share of mortgage activity decreased to 67.5% of total applications from 68.5% the previous week.

“The overall share of refinances declined for the fourth consecutive week, and conventional refinance applications fell more than 2% to the lowest level in four months,” Kan said. “Government refinance applications historically lag the more rate-sensitive movements of conventional applications, and that was true last week, as both FHA and VA refinancing volumes increased.”

The refinance index increased 0.1% from the previous week and was 7% higher year-over-year. The seasonally adjusted purchase index increased 2% from one week earlier, and the unadjusted purchase index increased 5% compared with the previous week.

“The housing market is entering the busy spring buying season with strong demand,” Kan said. “Purchase applications increased, with a rise in government applications – likely first-time buyers – pulling down the average loan size for the first time in six weeks.”

The FHA share of total mortgage applications increased to 12.1% from 11.2% the week prior. The VA share of total mortgage applications decreased to 12.3% from 11.9% the week prior.

Here is a more detailed breakdown of this week’s mortgage application data:

  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increased to 3.23% from 3.08%
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) increased to 3.33% from 3.23%, breaking a five-week stretch of decreases
  • The average contract interest rate for 30-year fixed-rate mortgages increased to 3.19% from 3%
  • The average contract interest rate for 15-year fixed-rate mortgages increased to 2.64% from 2.56%
  • The average contract interest rate for 5/1 ARMs increased to 2.84% from 2.83%

Leave a Reply

Your email address will not be published.

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please