Mortgage applications moved slightly higher, increasing 4% from one week earlier, according to the latest data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Jan. 20, 2017.
However, once again the results include an adjustment, and this time account for the MLK Day holiday.
The Refinance Index increased 0.2% from the previous week, while the seasonally adjusted Purchase Index increased 6% from one week earlier to its highest level since June 2016.
The refinance share of mortgage activity now only sits at 50.0% of total applications, marking the lowest level since July 2015, from 53% the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.7% of total applications.
In addition, the average loan size for purchase applications increased to $309,200, its highest level since Dec. 16 2016.
The Federal Housing Administration’s share of total applications increased to 13.6% from 13.1% the week prior. The Veteran Affairs’ share of total applications increased to 12.2% from 12.1% the week prior. The United States Department of Agriculture share of total applications remained frozen at 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%.
Similarly, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,000) 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 4.10%, while the average contract interest rate for 15-year fixed-rate mortgages increased to 3.57% from 3.51%.
The average contract interest rate for 5/1 ARMs decreased to 3.41% from 3.44%.