MBA: Rates Increase But So Do Applications

Even though the rates for the 30-year fixed-rate conforming mortgage rose to their highest level since November, application volume was up 11.7% for the week ended Jan. 4, according to the Mortgage Bankers Association.

The data include an adjustment for New Year’s Day, while for the previous week it was adjusted to take into account Christmas day.

The Refinance Index increased by 12% while the seasonally adjusted Purchase Index rose 10%. On an unadjusted basis, purchase applications are 8% lower than the same week in 2012.

The market share of refi apps remained at 82%. HARP refi apps fell to 25% from 27%,

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased by 9 basis points to 3.61%. The average contract interest rate for 30-year FHA-insured loans increased one basis point to 3.35%.

The average contract rate for jumbo 30-year FRMs rose three basis points to 3.78%, while for 15-year FRMs it increased two basis points to 2.88%. The rate for the 5/1 ARM was down one basis point to 2.64%.