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US MBA Text: Mkt Composite -2.5%, Refis -2% In March 1 Wk

     WASHINGTON (MNI) - The following is the text of the Mortgage Bankers
Association's Mortgage Applications Survey released Wednesday morning:
     Mortgage applications decreased 2.5 percent from one week earlier,
according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage
Applications Survey for the week ending March 1, 2019. The results for the week
ending February 22, 2019, included an adjustment for the Washington's Birthday
(Presidents' Day) holiday. 
     The Market Composite Index, a measure of mortgage loan application volume,
decreased 2.5 percent on a seasonally adjusted basis from one week earlier. On
an unadjusted basis, the Index increased 10 percent compared with the previous
week. The Refinance Index decreased 2 percent from the previous week. The
seasonally adjusted Purchase Index decreased 3 percent from one week earlier.
The unadjusted Purchase Index increased 11 percent compared with the previous
week and was 1 percent higher than the same week one year ago. 
     "Slightly higher mortgages rates last week led to a decrease in application
volume. Furthermore, the average loan size for purchase applications increased
to a record high, led by a rise in the average size of conventional loans. This
suggests that move-up and higher-end buyers have so far become a greater share
of the spring market," said Mike Fratantoni, MBA Senior Vice President and Chief
Economist. "Overall, conventional purchase loans are up 2.1 percent relative to
last year, indicating that homebuyers continue to be inspired by the stable rate
environment and the modest increase in housing supply." 
     The refinance share of mortgage activity decreased to 40.0 percent of total
applications from 40.4 percent the previous week. The adjustable-rate mortgage
(ARM) share of activity increased to 7.4 percent of total applications. 
     The FHA share of total applications increased to 10.3 percent from 10.2
percent the week prior. The VA share of total applications decreased to 10.4
percent from 10.7 percent the week prior. The USDA share of total applications
remained unchanged from 0.6 percent the week prior. 
     The average contract interest rate for 30-year fixed-rate mortgages with
conforming loan balances ($484,350 or less) increased to 4.67 percent from 4.65
percent, with points increasing to 0.44 from 0.42 (including the origination
fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate
increased from last week. 
     The average contract interest rate for 30-year fixed-rate mortgages with
jumbo loan balances (greater than $484,350) increased to 4.41 percent from 4.40
percent, with points decreasing to 0.25 from 0.29 (including the origination
fee) for 80 percent LTV loans. The effective rate decreased from last week. 
     The average contract interest rate for 30-year fixed-rate mortgages backed
by the FHA increased to 4.66percent from 4.64 percent, with points remaining
unchanged at 0.48 (including the origination fee) for 80 percent LTV loans. The
effective rate increased from last week. 
     The average contract interest rate for 15-year fixed-rate mortgages
increased to 4.08 percent from 4.00 percent, with points increasing to 0.46 from
0.38 (including the origination fee) for 80 percent LTV loans. The effective
rate increased from last week. 
     The average contract interest rate for 5/1 ARMs increased to 4.08 percent
from 3.95 percent, with points decreasing to 0.39 from 0.40 (including the
origination fee) for 80 percent LTV loans. The effective rate increased from
last week.
--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com
[TOPICS: MAUDS$,M$U$$$,MK$$$$,M$$MO$]

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