Mortgage application volume increased last week as interest rates slid toward record lows, the MBA reported today.
The MBA’s Market Composite Index increased 11.3 percent on a seasonally adjusted basis for the week ending March 6.
On an unadjusted basis, the application index was up 11.6 percent compared to a week earlier and 5.7 percent compared with the same week a year ago.
Once again, refinances saved the day, climbing 13.3 percent during the week, while FHA loans jumped 10.4 percent and even purchases increased 7.1 percent.
The refinance share of mortgage activity increased to 67.9 percent of total apps from 66.9 percent, still dominating the housing market where distressed sales seem to be the only real purchase activity.
Meanwhile, interest rates seem to be making their way back to record lows, as the 30-year fixed averaged 4.96 percent, down from 5.14 percent a week earlier.
That’s the lowest level since the 30-year hit a record low 4.89 percent during the week ending January 9, earlier this year.
The 15-year fixed decreased to 4.54 percent from 4.73 percent, while the one-year ARM actually increased to 6.21 percent from 6.13 percent.
The adjustable-rate mortgage share of activity remained unchanged at a meager 2.3 percent of total applications.
The MBA’s weekly survey covers roughly half of all residential retail mortgage applications, but doesn’t filter out declined or double apps.
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