Mortgage application volume surged during the week ending March 20 as the Fed made a pledge to buy up more mortgage-backed securities and treasuries, sending rates sharply lower, the MBA said today.
Home loans apps jumped 32.2 percent on a seasonally adjusted basis compared to one week earlier, 31.4 percent unadjusted, and were up 18 percent compared to the same week a year ago.
It was all about the refinances, which increased 41.5 percent from the week prior, though purchase activity and FHA lending saw mild gains as well.
The refinance share of mortgage activity increased to 78.5 percent of total applications, up from 72.9 percent a week earlier as rates plummeted.
The always hot 30-year fixed-rate mortgage averaged 4.63 percent, down from 4.89 percent, its lowest point in survey history, which began back in 1990.
The 15-year fixed slipped four basis points to 4.48 percent, while the one-year ARM increased two basis points to 6.22 percent.
“Mortgage rates fell sharply to low levels not seen in six decades following the Federal Reserve’s announcement on the Treasury bond and mortgage-backed securities purchase programs,” said Orawin Velz, Associate Vice President of Economic Forecasting.
“The drop offered a sizable refinance incentive for most homeowners sparking a pickup in refinance activity.”
I’m assuming application volume has spiked even more this week, though it’s unclear how many people are actually seeing success and how many are being turned away due to qualification issues.
The MBA’s weekly survey covers roughly half of all retail residential mortgage applications, including multiple and declined apps.
(photo: magnuskolstad)
