Mortgage applications climbed 4.5% in the week ended April 5, as refinances grew 6% and purchases slid 1%, according to data from the Mortgage Bankers Association's weekly mortgage applications survey.
"Although total purchase application volume fell last week, there was a significant divergence between the conventional and government markets," said Mike Fratantoni, MBA's vice president of research and economics. "Following the April 1 increase in FHA mortgage insurance premiums, government purchase applications fell by almost 14 percent, to their lowest level since February 2013. On the other hand, applications for conventional purchase loans increased by more than 5 percent, bringing the conventional purchase index to its highest level since October 2009 and the highest level since the expiration of the homebuyer tax credit. With these changes, the government share of all purchase loans fell to 30 percent, the lowest level since we began tracking this series in 2011."
Refinances grew to 75 percent of volume from 74% a week earlier, while adjustable-rate mortgages dipped to 5% of the market. HARP's share of refinances rose to 30% from 28% last week.
The rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) fell to 3.68% from 3.76 percent%, while the average 15-year fixed-rate mortgage slid to 2.92% from 2.99%.
