According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 26, mortgage applications increased 0.5 percent on a seasonally adjusted basis from one week earlier.
On an unadjusted basis, the Market Composite Index increased 2 percent compared with the previous week. The Refinance Index increased 0.1 percent from the previous week and was 7 percent higher than the same week one year ago.
The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 5 percent compared with the previous week and was 1 percent higher than the same week one year ago.
“Mortgage rates jumped last week on market expectations of stronger economic growth and higher inflation,” says the MBA’s Joel Kan. “The 30-year fixed rate experienced its largest single-week increase in almost a year, reaching 3.23 percent – the highest since July 2020.
“The overall share of refinances declined for the fourth consecutive week, and conventional refinance applications fell more than 2 percent to the lowest level in four months,” he adds. “Government refinance applications historically lag the more rate-sensitive movements of conventional applications, and that was true last week, as both FHA and VA refinancing volumes increased.”
The FHA share of total applications increased to 12.1 percent from 11.2 percent the week prior. The VA share of total applications increased to 12.3 percent from 11.9 percent the week prior. The USDA share of total applications increased to 0.4 percent from 0.3 percent the week prior.
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