Mortgage applications surged to its highest level since last September, according to data from the Mortgage Bankers Association (MBA) covering the week ending April 4.
The Market Composite Index, the MBA’s measure of mortgage loan application volume, increased 20% on both a seasonally adjusted and unadjusted basis from one week earlier. The seasonally adjusted Purchase Index increased 9% from one week earlier while unadjusted index increased 10% – the latter was also 24% higher than the same week one year ago.
The Refinance Index increased 35% from the previous week – the highest level in six months – and was 93% higher than the same week one year ago. The refinance share of mortgage activity increased to 43.6% of total applications from 38.6% the previous week. The average refinance loan size jumped to its second highest in the MBA data survey’s history at $399,600.
Among the federal programs, the FHA share of total applications increased to 16.3% from 15.8% the week prior while the VA share of total applications increased to 15.7% from 14.4% and the USDA share of total applications remained unchanged at 0.5%.
Separately, the MBA’s Mortgage Credit Availability Index (MCAI) rose by 2.5% to 102.9 in March; the index was benchmarked to 100 in March 2012. The Conventional MCAI increased 4.7% while the Government MCAI dipped by 0.1%. Of the component indices of the Conventional MCAI, the Jumbo MCAI jumped by 6.6%, and the Conforming MCAI squeaked up by 0.2%.
“Mortgage credit availability increased to its highest level since January 2023, driven by growth in cash-out refinance programs, as recent mortgage rate volatility has opened the door for some borrowers to refinance,” said Joel Kan, MBA’s vice president and deputy chief economist. “The credit supply growth was primarily in conventional programs, with jumbo availability at its highest in five years. Government credit availability was essentially unchanged over the month. Additionally, non-QM credit availability continues to grow.”
MAGA