US MBA Text: Mkt Composite +5.3%, Refis +5% February 22 Wk

     WASHINGTON (MNI) - The following is the text of the Mortgage Bankers

Association's Mortgage Applications Survey released Wednesday morning:

     Mortgage applications increased 5.3 percent from one week earlier,

according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage

Applications Survey for the week ending February 22, 2019. This week's results

include an adjustment for the Washington's Birthday (Presidents' Day) holiday. 

     The Market Composite Index, a measure of mortgage loan application volume,

increased 5.3 percent on a seasonally adjusted basis from one week earlier. On

an unadjusted basis, the Index decreased 3 percent compared with the previous

week. The Refinance Index increased 5 percent from the previous week. The

seasonally adjusted Purchase Index increased 6 percent from one week earlier.

The unadjusted Purchase Index decreased 1 percent compared with the previous

week and was 3 percent higher than the same week one year ago. 

     "Mortgage rates were little changed last week, but as we anticipated,

homebuyers are responding favorably to this more stable rate environment," said

Mike Fratantoni, MBA Senior Vice President and Chief Economist. "Purchase

applications for both conventional and government loans rose last week, with the

government gain led by a 14 percent increase in applications for VA purchase

loans." 

     Added Fratantoni, "Refinance application volume increased as well, with the

index reaching its highest level in a month. Borrowers with larger loans tend to

be more responsive for a given drop in rates, and competition for these loans is

fierce. Therefore, it was not surprising to see the average rate for a 30-year

fixed jumbo loan drop to its lowest level since January 2018." 

     The refinance share of mortgage activity decreased to 40.4 percent of total

applications from 41.7 percent the previous week. The adjustable-rate mortgage

(ARM) share of activity decreased to 7.3 percent of total applications. 

     The FHA share of total applications remained unchanged from 10.2 percent

the week prior. The VA share of total applications increased to 10.7 percent

from 10.1 percent the week prior. The USDA share of total applications decreased

to 0.6 percent from 0.7 percent the week prior. 

     The average contract interest rate for 30-year fixed-rate mortgages with

conforming loan balances ($484,350 or less) decreased to 4.65 percent from 4.66

percent, with points remaining unchanged at 0.42 (including the origination fee)

for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased

from last week. 

     The average contract interest rate for 30-year fixed-rate mortgages with

jumbo loan balances (greater than $484,350) decreased to 4.40 percent from 4.56

percent, with points increasing to 0.29 from 0.23 (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 decreased to 4.64 percent from 4.68 percent, with points decreasing

to 0.48 from 0.58 (including the origination fee) for 80 percent LTV loans. The

effective rate decreased from last week. 

     The average contract interest rate for 15-year fixed-rate mortgages

decreased to 4.00 percent from 4.04 percent, with points decreasing to 0.38 from

0.44 (including the origination fee) for 80 percent LTV loans. The effective

rate decreased from last week. 

     The average contract interest rate for 5/1 ARMs decreased to 3.95 percent

from 4.00 percent, with points increasing to 0.4 from 0.24 (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$]