WASHINGTON (3/26/15)--Mortgage application activity perked up last week as the composite index for the Mortgage Bankers Association's mortgage application survey jumped 9.5% after a nearly 4% drop the prior week (Economy.com March 25).
Refinance applications, which climbed 12.3% for the week, spurred the resurgence. Though, the purchase index also marched higher by 4.9% after falling last week as well.
"Last week brought positive news regarding mortgage application activity, as both purchase and refinance applications advanced during the week ending March 20," said Michael McGrane, Moody's analyst (Economy.com). "Lower mortgage rates likely fueled much of the gain in refinance activity, but this will prove fleeting as the economy heats up and the Fed's first interest rate hike since 2006 comes into focus."
The four-week moving average for refinance applications has fallen 24.2% over the past month, but remains 19.7% higher on an annual basis. Refinancings comprised 60.5% of all applications for the week ending March 20.
Purchase applications have dropped by 3.4% over the past month, but remain 1.5% above their year-over-year pace.
As for mortgage rates, the 30-year fixed-rate mortgage rate fell by 9 basis points during the week to 3.9%, which is 9 basis points lower on a monthly basis and 66 basis points lower on an annual basis.
For 30-year fixed-rate jumbo mortgages, rates fell 5 basis points to 3.89%. The five-year adjustable-rate mortgage rate fell by 2 basis points as well.