The Mortgage Bankers Association (MBA) said today that mortgage loan application volume increased 1.3 percent lasts week on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the gain was 1.4 percent.
Refinancing activity also rose, by 1.3 percent, and purchase volume grew by 1.5 percent. It was the third consecutive weekly increase for purchase applications.
Government purchase applications drove the increase, rising 3.4 percent from the previous week, while conventional purchase applications were essentially flat.
Unadjusted, purchase volume went up 1.5 percent compared with the previous week and 7.1 percent relative to four weeks ago, but it was 33.7 percent lower than the same week one year ago.
The refinance share of mortgage activity remained at 78.0 percent of total applications, and the adjustable-rate mortgage (ARM) share decreased to 5.4 percent from 5.7 percent.
The average contract interest rate for 30-year fixed-rate mortgages slipped to 4.60 percent from 4.69 percent, with points increasing to 0.93 from 0.88 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages dipped to 4.03 percent from 4.12 percent, with points increasing to 1.01 from 0.83, to the lowest rate ever recorded in the survey. The effective rate also decreased from last week.
The average contract interest rate for one-year ARMs decreased to 7.10 percent from 7.15 percent, with points edging down to 0.21 from 0.23.
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022