WASHINGTON (3/6/14)--Weekly mortgage applications rose 9.4% on a seasonally adjusted basis for the week ending Feb. 28, according to the Mortgage Bankers Association's weekly survey.
On an unadjusted basis, the market composite index, which measures mortgage loan application volume, increased 11% compared with the previous week.
The refinance index posted a 10% gain from the previous week. On a four-week moving average basis, however, refinance activity dropped by 2.5% over the past month. At 9.6%, refinance activity is 63% lower than the same period one year ago.
Many homeowners have already refinanced, and with rates eclipsing 5%, the forecast for refinance originations "appears gloomy," said analysts from Moody's (Economy.com March 5).
Purchase applications have dropped by 11.8% over the past month and are 15.7% below their year-ago level. Demand is essentially unchanged from three years ago, said Moody's.
Rates for 30-year fixed-rate mortgages fell by 6 basis points to 4.47%--unchanged from four weeks ago and 77 basis points higher than February 2013. Thirty-year fixed-rate jumbo mortgages decreased by 10 basis points to 4.37%.
The five-year adjustable-rate mortgage rate moved 8 basis points lower, ending the week at 3.09%. The interest rate is 54 basis points higher compared with a year earlier.