Refis Push Overall Increase in Mortgage Applications: MBA

Higher refinancing activity helped fuel an increase in overall application activity for the week ending Feb. 5, according to the Mortgage Bankers Association's weekly survey.

The MBA's market composite index rose 9.3% from the previous week on a seasonally adjusted basis. The refinance index jumped 16% and the purchase index increased 0.2%, both on a seasonally adjusted basis. The unadjusted purchase index was 7% higher than the week before and 25% above where the index stood a year ago.

Keeping in like with the indexes, the refinance share of mortgage activity rose 200 basis points to 61.2% of total applications. The share comprising adjustable-rate mortgages increased to 6.4% of total applications.

Meanwhile, applications for Federal Housing Administration loans dropped 60 basis points from the previous week to 12.3%, with USDA loan applications dropping by a lesser 10 basis points to 0.6% of applications. The VA share of total applications held steady at 11.1% compared to the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with balances of $417,000 or less fell six basis points to 3.91%.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances greater than $417,000 dropped eight basis points to 3.76%, its lowest value since April 2013. The average contract interest rate for 30-year fixed-rate FHA-backed mortgages also dipped eight basis points, to 3.72%.

The average contract interest rate for both 15-year fixed-rate mortgages and 5/1 adjustable-rate mortgages decreased four basis points, to 3.18% and 2.96%, respectively.