Mortgage application activity enjoyed a vigorous upswing during the week ending Feb. 27, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, increased 11% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index was up by 12.1%.
The seasonally adjusted Purchase Index increased 6.1% from one week earlier while the unadjusted index rose by 8.9% – the latter was also 10% higher than the same week one year ago. The Refinance Index increased 14.3% from the previous week and was 109% higher than the same week one year ago, while the refinance share of mortgage activity increased to 59.8% of total applications from 58.6% the previous week.
Among the federal programs, the FHA share of total applications decreased to 15.8% from 16.1% the week prior while the VA share of total applications decreased to 17.1% from 18.7% and the USDA share of total applications remained unchanged at 0.4%.
“Mortgage applications increased last week, driven by continued strength in refinance activity, as mortgage rates stayed near their lowest level since 2022,” said Joel Kan, MBA’s vice president and deputy chief economist. “Refinance applications increased for the fourth straight week to the strongest pace since 2022, with conventional refinances up 20%. The increase in the average loan size for refinances indicates that more borrowers with larger loan sizes are seeking to lower their monthly payments. Purchase applications also moved higher, with the week’s pace almost 10% ahead of last year’s pace, as lower rates and growing levels of housing inventory continue to support homebuyer interest.”
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