Mortgage application volume started off 2017 on a good note as activity increased 5.8% from one week earlier, according to the Mortgage Bankers Association.
The MBA's Weekly Mortgage Applications Survey for the week ending Jan. 6 found that the refinance index increased 4% from the previous week.
The most recent week's results include an adjustment to account for the New Year's Day holiday, while the previous week's results were adjusted for the Christmas holiday.
The seasonally adjusted purchase index increased 6% from one week earlier, while the unadjusted purchase index increased 45% compared with the previous week and was 18% lower than the same week one year ago.
The market share of refi applications decreased to 51.2% from 52.2% the previous week.
The adjustable-rate mortgage share of activity increased to 5.5% of total applications, while the Federal Housing Administration share increased to 11.7% from 11.6%.
The VA share increased to 12.8% from 12.3% and the USDA share decreased to 0.9% from 1.1%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased 7 basis points to 4.32%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000), the average contract rate decreased 10 basis points to 4.27%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.08% from 4.22%, while for 15-year fixed-rate mortgages backed by the FHA, the average decreased to 3.56% from 3.64%.
The average contract interest rate for 5/1 ARMs increased 4 basis points to 3.32%.