Mortgage applications increased last week due to higher refinance activity as interest rates for conforming mortgages were greater than jumbo loans.
Loan application volume was up 7.3% on a seasonally adjusted basis for the period ending Dec. 5, according to data from the Mortgage Bankers Association. A week earlier, which included the Thanksgiving holiday, mortgage applications fell 7.3%.
The refinance gauge elevated 13% week over week, while the purchase index rose 1%, the Washington-based trade group said.
Refinances accounted for 64% of total applications, up four percentage points from the week before. The adjustable-rate mortgage share made up 7% of total applications. The Federal Housing Administration share represented 9% of overall volume, while the Veterans Affairs applications consisted of 9.6% and the USDA share of applications was 0.8%.
After interest rates for jumbo loans with balances above $417,000 were higher for the first time in slightly over a year than conforming mortgages last week, the opposite occurred during the week of Dec. 5. The average 30-year fixed-rate mortgage was up three basis points, to 4.11%. Conversely, a 30-year jumbo loan averaged 4.07%, down four basis points.
Meanwhile, 30-year mortgages backed by the FHA jumped two basis points, to 3.87%. Additionally, the average interest rate for a 15-year fixed mortgage was up five basis points, to 3.35%.