The MBA's market composite index increased 6.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased 6.5% compared with the previous week.Â
The refinance index increased 13.5% from the previous week. The refinance share of mortgage activity increased to 75.2% of total applications from 70.5% the previous week.
The seasonally adjusted purchase index decreased 11.2% from one week earlier. The unadjusted purchase index decreased 10.4% compared with the previous week and was 13.9% lower than the same week one year ago.
‘Renewed concerns about sovereign debt in Europe led to a drop in rates last week, with the 30-year rate tying our survey low, reached in early February,’ says Jay Brinkmann, the MBA's chief economist and senior vice president of research and education. ‘While purchase activity declined sharply for the week, this was mostly due to a 23 percent drop in applications for Federal Housing Administration (FHA) purchase loans. This drop follows big increases in the demand for FHA loans over several weeks in anticipation of the FHA mortgage insurance premium increases that went into effect last week. This was the largest weekly drop in the government purchase index since the expiration of the first-time homebuyer tax credit in May 2010.’
The average loan size of all loans for home purchase in the U.S. in March was $233,381, up from $225,463 in February. The average loan size for a refinance was $214,593, down from $222,048 in February. The largest purchase loans were made in the Pacific region, at an average of $337,227. The largest refinance loans were also made in the Pacific region, at an average of $290,711.