Mortgage Applications Up, Rates at Record Lows

The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a rise of 4.5% in the group's seasonally adjusted composite index compared with last week's drop of 0.9%. Last week's results have been adjusted to account for the Thanksgiving holiday. Unadjusted, the composite index rose by 49%.

Applications for refinancing rose by 6% (seasonally adjusted), while seasonally adjusted purchase applications increased by 0.1% from the previous week. Unadjusted, the purchase index rose by 36% compared with the previous week and fell by 0.1% compared with the same week a year ago.

The refinancing rate increased two points to 83% of all applications. About 97% of the applications were seeking fixed-rate loans, up a point from last week's reading.

The average contract interest rate for a conforming 30-year fixed-rate mortgage decreased from 3.53% to 3.52%, equaling the lowest rate ever in the 22-year history of the MBA survey. The rate for a jumbo 30-year fixed-rate mortgage increased, from 3.75% to 3.79%. The average interest rate for a 15-year fixed-rate mortgage decreased from 2.89% to 2.86%.

The contract interest rate for a 5/1 adjustable rate mortgage increased from 2.60% to 2.62%.

Applications for refinancings rose for the first time in several weeks, and the four-week average for purchase applications is at its highest point since 2010 and up 25% from its lowest point in 2011.

Paul Ausick

Filed under: 24/7 Wall St. Wire, Housing, Research