Mortgage demand jumped for the second straight week as rates fell, according to the latest data from the Mortgage Bankers Association.
- Total mortgage demand rose to an index of 269.3 the first week of March, up 11.2% from the prior week and the highest level since early October.
Purchase vs Refi: Similar to last week, this week’s jump was thanks to a jump in refinance demand index, which jumped to 911.3, up 16% from the prior week and the highest level since early October.
- Purchase demand finally made a substantial move after three weeks of stagnation. The purchase index rose to 154.6, up 7% from the prior week and the highest level since the end of January.
Rates: Mortgage rates fell for the sixth straight week as markets remain confused by the ongoing tariff debate. The average contract interest rate for 30-year fixed-rate mortgage fell to 6.67% for the first week of March, down six basis points from the prior week and the lowest level since early December.
- FHA: The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.34%
- 15-YR: The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.04%
What They’re Saying: Joel Kan, MBA’s Deputy Chief Economist, said things are looking up as we head into the soring buying season. “As we enter the spring homebuying season, the purchase index was more than 4 percent higher than a year ago, and activity was up across all loan categories.
Bottom Line: The recent economic certainty and concern over a slowing economy has been good for rates and has thus been good for the mortgage industry. However, it is a very fine line. Too much certainty can make wannabe homebuyers pull back if they are concerned about their job