Mortgage Application Activity Up in Spite of Rate Increase: MBA

Mortgage

Mortgage application volume increased 4% from one week earlier even as interest rates rose during the period, according to the Mortgage Bankers Association.

The MBA’s Weekly Mortgage Applications Survey for the week ending Jan. 20 found that the refinance index increased 0.2% from the previous week. This week’s results included an adjustment for the Martin Luther King Day holiday.

The seasonally adjusted purchase index increased 6% from one week earlier, while the unadjusted purchase index increased 2% compared with the previous week and was 0.1% higher than the same week one year ago.

The market share of refi applications decreased to 50% from 53% the previous week.

The adjustable-rate mortgage share of activity remained unchanged at 5.7%, while the Federal Housing Administration share increased to 13.6% from 13.1%.

The VA share of total applications increased 1 basis point to 12.2% and the USDA share remained unchanged from 0.9% the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,000 or less) increased to 4.35% from 4.27%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,000), the average contract rate increased to 4.28% from 4.22%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.19% from 4.1%, while for 15-year fixed-rate mortgages backed by the FHA, the average increased to 3.57% from 3.51%.

The average contract interest rate for 5/1 ARMs decreased 3 basis points to 3.41%.

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