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2026-02-18 22:01:53
[US Mortgage Market Divergence Intensifies: Refinancing Demand Rises for Two Consecutive Weeks, Home Purchase Applications Fall for Four Consecutive Weeks] ⑴ Data released Wednesday by the Mortgage Bankers Association showed that the composite mortgage application index rose 2.8% to 339.0 in the week ending February 13. The refinancing index climbed for the second consecutive week, rising 7.1% to 1375.9, a cumulative increase of 8.4% over two weeks. Refinancing applications accounted for 57.4% of all applications, up from 56.4%. ⑵ In stark contrast, the home purchase index fell for the fourth consecutive week, dropping 2.7% to 157.1, a cumulative decline of 19.1% over the past month. Despite the recent weakness, both indices are still 131.8% and 9.1% higher year-over-year, respectively. ⑶ Regarding interest rates, the 30-year large loan and FHA loan rates fell to 6.21% and 5.99%, respectively, both hitting new lows since 2023. The 30-year eligible lending rate dipped 4 basis points to 6.17%, just 1 basis point above its 2026 low. All three major lending rates remain 71 to 82 basis points lower year-over-year. (4) The proportion of adjustable-rate loans rose to 8.2%, the highest since October 31. The 5/1 ARM rate fell to 5.29%, the lowest since 2022, maintaining a relatively attractive spread of 88 and 92 basis points over eligible and large loans, respectively. The MBA's deputy chief economist stated that the lowest interest rate level in four weeks boosted refinancing activity.
