Mortgage application volume increased 2.7% on an adjusted basis during the week ended April 1, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
Applications for refinances increased 7% on lower interest rates, while applications for purchases decreased 2%.
On an unadjusted basis, application volume increased 3% compared with the previous week. Applications for purchases decreased 2%, on an unadjusted basis, and increased 11% compared with the same week one year ago.
The refinance share of mortgage activity increased to 54.5% of total applications – up from 52.4% the previous week.
The increase in applications for refinances was due, in part, to a dip in mortgage interest rates. The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.86%, down from 3.94% the previous week.
The average rate for a jumbo 30-year FRM was 3.76%, down from 3.82%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.73%, down from 3.76%.
The average rate for a 15-year FRM was 3.10%, down from 3.19%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.94%, down from 3.07%.
The ARM share of activity decreased to 4.7% of total applications.
Looking at application volume by loan type, applications for mortgages backed by the FHA were about 11.3% of all applications – down from 11.5% the week prior. The Veterans Affairs share of total applications was 12.2%, down from 12.9%, and the U.S. Department of Agriculture share was 0.8%, down from 0.9%.