Looks like April is coming in all bright and lucky for soon-to-be & current homeowners!
According to the Mortgage Bankers Association (MBA), the first week of March witnessed a noteworthy shift in mortgage activity. The Application volume saw a substantial 9.7% increase on a seasonally adjusted basis compared to the previous week.
Unadjusted figures are even more attractive, revealing a remarkable 12.0% surge in the Index.
Compared to the first two months of 2024, the refinance application volume increased by 8.0%during the week ending March 1.
However, when we look at the same week in the previous year (2023), the increase was slightly lower at 2.0%.
Additionally, the part of all mortgage activity related to refinancing went down a bit from 31.2 percent to 30.2%. This suggests that a slightly smaller portion of people were looking to refinance compared to the previous week.
The number of refinance applications that were purchased also increased to 11% after seasonal adjustments and before it was around 13%.
When compared to the same week last year, the index was 8.0% lower. This suggests a significant increase in current interest in buying homes.
The most recent information about inflation wasn't much different from what experts expected, yet the mortgage rates did go down a bit.
Last week, the 30-year fixed mortgage rate decreased slightly to 7.02%, explained Mike Fratantoni, who is a chief economist & SVP at the Mortgage Bankers Association.
He also mentioned that more people applied for mortgages compared to the week before, especially those looking to buy a home for the first time. This is good news for people who are looking to buy homes this spring.
There are more new house listings, which is positive because there haven't been a lot of homes on the market lately.
Key Insights and Trends in Mortgage Applications from Last Week
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Adjustable Rate Mortgages accounted for 7.7% of applications, up from 7.5%.
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The average interest rate for a 15 year fixed-rate mortgage (FRM) was 6.66%, and you would need to pay 0.67 points as a fee, compared to the previous week's average rate which was slightly higher at 6.70%, with a fee of 0.68 points, ultimately showing a slight decline in the interest rates.
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The interest rates for regular 30-year mortgages dropped slightly to 7.02%, down by 2 points from last week.
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Jumbo 30 year FRM went up slightly to 7.21%, but the upfront fees decreased from 0.57 to 0.36 points.
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The average loan amount increased from $373,600 to $385,100 reversing a two-week decline. Purchase loans also grew by $12,500 reaching $442,500.
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The average interest rate for 5/1 adjustable-rate mortgages went up from 6.33% to 6.38%, and the associated points increased from 0.58 to 0.67.
These updates are instilling hope for homeowners and buyers, allowing their homeownership dreams to blossom in the spring. Although the rates haven't significantly dropped, they still send optimistic signals.