Application volume increases even as mortgage rates rise
Even as mortgage rates rose to their highest level since March, application activity increased from one week earlier, according to the Mortgage Bankers Association.
The MBA's market composite index, a measure of mortgage loan application volume, for the week ending Jan. 12 increased 4.1% on a seasonally adjusted basis from one week earlier.
The survey found that the refinance index increased 4% from the previous week.
The refinance application share decreased to 52.2% from 52.9% the previous week.
The seasonally adjusted purchase index increased 3% from one week earlier. The unadjusted purchase index increased 35% compared with the previous week and was 7% higher than the same week one year ago.
Adjustable-rate loan application activity increased to 5.2% from 5%, while the share of Federal Housing Administration-guaranteed loans increased to 11.7% from 11.1%.
The share of applications for Veterans Affairs-guaranteed loans decreased to 10.7% from 11.4% and the U.S. Department of Agriculture/Rural Development share increased to 0.8% from 0.7%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to 4.33% from 4.23%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100), the average contract rate increased to 4.25% from 4.16%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.3% from 4.16%, while for 15-year fixed-rate mortgages the average increased to 3.77% from 3.66%.
Rates for all three 30-year loans were the highest since last March, while for the 15-year fixed-rate mortgage it was the highest since January 2014.
The average contract interest rate for 5/1 ARMs increased to its highest level since April 2011, 3.62%, from 3.5%.