Weekly Mortgage Applications Rise as Rates Fall, MBA Says
Mortgage applications in the US increased last week as rates fell, with a "resilient" labor market supporting housing demand despite the macro uncertainty, the Mortgage Bankers Association said Wednesday.The market composite index, which measures loan application volume, rose 7.9% for the week through Friday on a seasonally adjusted basis. Without adjustment, the index increased 9%."Mortgage rates declined last week as financial markets responded positively to the Middle East ceasefire and the lower trend in oil prices," said Mike Fratanton, the MBA's chief economist. "Despite the geopolitical uncertainty, housing demand is being supported by a still resilient job market, and homebuyers are experiencing a buyer's market in most of the country given the higher levels of inventory relative to last year."The average interest rate for 30-year fixed mortgages with conforming loan balances of $832,750 or less fell to 6.35% from 6.42% a week ago. For loan balances higher than that amount, the rate dropped to 6.43% from 6.48%. For 15-year loans, the rate moved lower to 5.75% from 5.85% week to week, according to the report.Late Tuesday, US President Donald Trump extended a two-week ceasefire deal with Iran, though he said the naval blockade of Iranian ports would continue.Fixed-rate mortgages with 30-year terms backed by the Federal Housing Administration fell to 6.10% from 6.14% the week before, the MBA said Wednesday. The share of FHA loans, which are often used by first-time home buyers and can involve smaller down payments, remained unchanged at 18.2% of total applications.The refinance index moved up 6% on a weekly basis, while the seasonally adjusted purchase index surged 10%, according to the report.Earlier this week, a survey by Redfin showed that US home sellers outnumbered buyers by a near-record percentage in March.