WASHINGTON, D.C. – (RealEstateRama) — Mortgage applications increased 10 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 8, 2016.
The Market Composite Index, a measure of mortgage loan application volume, increased 10 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 10 percent compared with the previous week. The Refinance Index increased 11 percent from the previous week to its highest level since February 2016. The seasonally adjusted Purchase Index increased 8 percent from one week earlier its highest level since October 2015. The unadjusted Purchase Index increased 9 percent compared with the previous week and was 24 percent higher than the same week one year ago.
“Helped by a persistently strong job market and low rates, applications for both conventional and government home purchase loans increased last week. The purchase index was at its second highest level since May 2010. Applications to refinance also increased as the 30 year contract rate decreased to its lowest level since January 2015,” said Mike Fratantoni, MBA’s Chief Economist.
The refinance share of mortgage activity increased to 54.9 percent of total applications from 54.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5 percent of total applications.
The FHA share of total applications decreased to 10.8 percent from 11.3 percent the week prior. The VA share of total applications decreased to 11.9 percent from 12.2 percent the week prior. The USDA share of total applications remained unchanged to 0.8 percent.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.82 percent from 3.86 percent, with points increasing to 0.33 from 0.32 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. This is the lowest since January 2015. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.74 percent from 3.76 percent, with points increasing to 0.31 from 0.27 (including the origination fee) for 80 percent LTV loans. This is the lowest rate since February 2016. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.66 percent from 3.73 percent, with points decreasing to 0.29 from 0.36 (including the origination fee) for 80 percent LTV loans. This is the lowest rate since April 2015. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 3.10 percent, with points remaining unchanged at 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate was unchanged from last week.
The average contract interest rate for 5/1 ARMs increased to 2.94 percent from 2.94 percent, with points decreasing to 0.2 from 0.26 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visit www.mba.org/WeeklyApps, contact 
The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.
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