After slowing for the end-of-year holidays, application volume increased by 4.5% on a seasonally adjusted basis for the week ended Jan. 6, according to the Mortgage Bankers Association. The results for the current survey as well as the previous survey include adjustments to account for the Christmas and New Year's Day holidays.
The Refinance Index rose by 3.3% from the week of Dec. 30, although the market share of refi applications fell to 80.8% from its 2011 high of 81.9%. Purchase application volume was up 8.1% on a seasonally adjusted basis but down nearly 18% on an unadjusted basis from the same week in 2011.
The four categories of fixed-rate loans tracked went on divergent paths for the week. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) was up four basis points to 4.11%, while for 30-year FRMs with jumbo loan balances, the average contract rate fell by four basis points to 4.34%.
The average contract interest rate for 30-year Federal Housing Administration-insured loans was unchanged from the previous week at 3.96%, while the average contract interest rate for 15-year FRMs increased by three basis points to 3.40%.
