US Mortgage Applications Rise in the Week Ending February 20

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, February 20, the Market Composite Index—a measure of mortgage loan application volume—increased 0.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 2.0%.

The Refinance Index increased 4.0% from the previous week and was 150.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 5.0% from one week earlier. On an unadjusted basis, the Purchase Index decreased 1.0% compared with the prior week but was 12.0% higher than the same week one year ago.

In remarks accompanying the release, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage rates followed Treasury yields lower last week, with the 30-year fixed rate declining to 6.09%—its lowest level since September 2022. The decrease in rates was enough to drive a 5% increase in conventional refinance applications and a 26% increase in VA refinances. Purchase applications were down over the week but were 12% higher than a year ago, as the combination of lower rates and improving affordability conditions continue to support stronger demand than last year. The ARM share stayed above 8%, as ARM rates remained more than 80 basis points below conforming fixed rates. This is giving payment-sensitive borrowers or those seeking larger loans an incentive to choose this product offering.”