Mortgage Refinancing Picks Up Week of Feb. 29

Washington, DC, March 5, 2008 — Mortgage applications increased 3 percent for the week ending Feb. 29, mostly on the strength of refinancing activity, according to the weekly survey by the Mortgage Bankers Association.

The Refinance Index increased 4.5 percent from the previous week and the seasonally adjusted Purchase Index increased 1.4 percent.

The Conventional Purchase Index increased 0.9 percent while the Government Purchase Index (largely FHA) increased 3.5 percent.

The refinance share of mortgage activity increased to 52.4 percent of total applications from 52.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 17.3 from 15.0 percent of total applications from the previous week.

The average interest rate for 30-year fixed-rate mortgages decreased to 5.98 percent from 6.27 percent.

The average interest rate for 15-year fixed-rate mortgages decreased to 5.26 percent from 5.77 percent.

The average interest rate for one-year ARMs decreased to 5.83 percent from 5.84 percent.