Mortgage application activity was mostly flat for the week ending Feb. 20, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, inched up by only 0.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased by 2%.
The seasonally adjusted Purchase Index dropped by 5% from one week earlier while the unadjusted index dipped 1% and was 12% higher than the same week one year ago. The Refinance Index increased 4% from the previous week and was 150% higher than the same week one year ago, while the refinance share of mortgage activity increased to 58.6% of total applications from 57.4% the previous week.
Among the federal programs, the FHA share of total applications decreased to 16.1% from 18.4% the week prior while the VA share of total applications increased to 18.7% from 16.5% and the USDA share of total applications remained unchanged at 0.4%.
Joel Kan, MBA’s vice president and deputy chief economist, observed that the adjustable-rate mortgage (ARM) share of the market “stayed above 8%, as ARM rates remained more than 80 basis points below conforming fixed rates. This is giving payment-sensitive borrowers or those seeking larger loans an incentive to choose this product offering.”
