A surge in applications for refinances linked to a recent drop in mortgage interest rates caused mortgage application volume to increase 2.7% on an adjusted basis during the week ended April 21, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
Applications for refinances increased 7%, while applications for purchases decreased 1%.
On an unadjusted basis, total volume increased 3% compared with the previous week. Applications for purchases increased 0.1%, on an unadjusted basis, and increased 0.4% compared with the same week one year earlier.
As a result of the spike in applications for refinances, the refinance share of mortgage activity increased to 44.0%, up from 42.4% the previous week.
According to the MBA’s data, the average rate for a 30-year, fixed-rate mortgage during the week ended April 21 was 4.20%, down from 4.22%.
The average rate for a 30-year jumbo FRM remained unchanged at 4.15%.
The average rate for a 30-year FRM backed by the Federal Housing Administration was 4.03%, down from 4.09%.
The average rate for a 15-year FRM was 3.46%, down from 3.50%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.22%, down from 3.27%.
The ARM share of activity increased to 8.7% of total applications.
The average loan size for refinance applications increased to its highest level since September 2016, at $266,900, according to the MBA.