Interest rates fell along with the stock market last week as fears about the economic impact of COVID-19 sent investors fleeing to the safety of U.S. Treasuries. Applications for refinancing surged again, but purchase applications did not respond to the lower rates.
The Mortgage Bankers Association’s (MBA) Market Composite Index jumped 15.1 percent on a seasonally adjusted basis during the week which ended February 28. The results for the prior week had included an adjustment to account for the Presidents’ Day holiday. On an unadjusted basis the Index rose 29 percent.
The Refinance Index increased 26 percent from the previous week and was 224 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 66.2 percent of total applications from 60.8 percent the previous week. Refinancing has accounted for more than 60 percent of mortgage applications since the second week of the year.
While it gained 11 percent before adjustment, the seasonally adjusted Purchase Index decreased 3 percent from one week earlier. Purchase applications remained 10 percent higher than a year earlier for the third consecutive week.
