The pace of mortgage applications increased last week despite the volatility in interest rates, continuing a strong stride into spring. Mortgage applications increased by 4.6% on a seasonally adjusted basis for the week ending March 27th, according to the Mortgage Bankers Association (MBA).
“This weeks’ mortgage application survey falls right into line with recent indications that home sales-new, existing and pending – are on the rise, as is consumer sentiment”
said Lynn Fisher, MBA’s Vice President of research and economics.
Interest rates for 30-Year Fixed-Rate Mortgages with conforming loan balances ($417,000 or less) decreased to 3.89 percent from 3.90 percent, with points decreasing to .36 from .37 for 80 percent loan to value ratio loans, according to the MBA survey.
An increase in applications for conventional and government loans suggest more first-time home buyers may be entering the market. Government-insured FHA loans along with Veterans Administration loans are typically the top product choice for these buyers.
“3.75 percent remains the most prevalently-quoted conventional 30-year fixed rate for top tier scenarios. Most of the lenders that moved up to 3.875 percent with last week’s spike are now back down to 3.75 percent, and a few of the most aggressive lenders are offering 3.625 percent,” wrote Matthew Graham of Mortgage News Daily.
More volatility will likely be ahead.