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$]