Mortgage Applications Rise from More Refinance Activity

Mortgage applications increased last week due to higher refinance activity as interest rates for conforming mortgages were greater than jumbo loans.

Loan application volume was up 7.3% on a seasonally adjusted basis for the period ending Dec. 5, according to data from the Mortgage Bankers Association. A week earlier, which included the Thanksgiving holiday, mortgage applications fell 7.3%.

The refinance gauge elevated 13% week over week, while the purchase index rose 1%, the Washington-based trade group said.

Refinances accounted for 64% of total applications, up four percentage points from the week before. The adjustable-rate mortgage share made up 7% of total applications. The Federal Housing Administration share represented 9% of overall volume, while the Veterans Affairs applications consisted of 9.6% and the USDA share of applications was 0.8%.

After interest rates for jumbo loans with balances above $417,000 were higher for the first time in slightly over a year than conforming mortgages last week, the opposite occurred during the week of Dec. 5. The average 30-year fixed-rate mortgage was up three basis points, to 4.11%. Conversely, a 30-year jumbo loan averaged 4.07%, down four basis points.

Meanwhile, 30-year mortgages backed by the FHA jumped two basis points, to 3.87%. Additionally, the average interest rate for a 15-year fixed mortgage was up five basis points, to 3.35%.