US MBA Text: Mkt Composite +8.9%, Refis +12% In March 22 Wk

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

Association's Mortgage Applications Survey released Wednesday morning:

     Mortgage applications increased 8.9 percent from one week earlier,

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

Applications Survey for the week ending March 22, 2019. 

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

increased 8.9 percent on a seasonally adjusted basis from one week earlier. On

an unadjusted basis, the Index increased 9 percent compared with the previous

week. The Refinance Index increased 12 percent from the previous week. The

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

The unadjusted Purchase Index increased 7 percent compared with the previous

week and was 4 percent higher than the same week one year ago. 

     "The spring buying season is off to a strong start. Thanks to an

unexpectedly large drop in mortgage rates following last week's FOMC meeting,

purchase applications jumped 6 percent and refinance applications surged over 12

percent," said Joel Kan, MBA's Associate Vice President of Economic and Industry

Forecasting. "Rates dropped across all loan types, and the 30-year fixed-rate

mortgage is now more than 70 basis points below last November's peak. The

average loan size increased once again to new highs for both purchase and

refinance loans, as borrowers with - or seeking - larger loans tend to be more

reactive to the drop in rates." 

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

applications from 39.2 percent the previous week. The adjustable-rate mortgage

(ARM) share of activity increased to 7.8 percent of total applications. 

     The FHA share of total applications decreased to 9.3 percent from 10.4

percent the week prior. The VA share of total applications decreased to 10.4

percent from 10.6 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) decreased to 4.45 percent from 4.55

percent, with points decreasing to 0.39 from 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 4.35 percent from 4.37

percent, with points increasing to 0.27 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 4.48 percent from 4.59 percent, with points decreasing

to 0.48 from 0.50 (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 3.87 percent from 3.97 percent, with points increasing to 0.47 from

0.40 (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 3.77 percent

from 3.99 percent, with points increasing to 0.30 from 0.29 (including the

origination fee) for 80 percent LTV loans. The effective rate decreased from

last week.

--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com

[TOPICS: MAUDS$,M$U$$$,MK$$$$,M$$MO$]