Mortgage application activity was on the rise for the week ending March 6, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, increased 3.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased 4.1%.
The seasonally adjusted Purchase Index jumped by 7.8% from one week earlier while the unadjusted index rose by 9.3% and was also 11% higher than the same week one year ago. In comparison, the Refinance Index inched up by 0.5% from the previous week, although it was 81% higher than the same week one year ago. The refinance share of mortgage activity dipped to 57.8% of total applications from 59.8% the previous week.
Among the federal programs, the FHA share of total applications increased to 17.1% from 15.8% the week prior while the VA share of total applications decreased to 16.1% from 17.1% and the USDA share of total applications remained unchanged at 0.4%.
Mike Fratantoni, MBA’s senior vice president and chief economist, observed, “Purchase activity increased last week, particularly for FHA loans, which moved up more than 11%. The pace of homebuying continues to track ahead of last year’s pace, with overall purchase volume up 10%. More inventory on the market is supporting more transactions.”
