Mortgage application volume increased by 2.1% over last week on a seasonally adjusted basis, as a gain in purchase applications to their highest level since spring more than made up for a decline in refinance applications to their lowest point since the start of the summer, according to new figures released by the Mortgage Bankers Association. The previous week's data was not adjusted for Veterans Day.
Refinancing applications are at their lowest level since the end of June, as the index fell 1.0%. Purchase application volume continued a rising trend (up four of the past five weeks), with an increase of 14.4% on a seasonally adjusted basis when compared with last week. This is the highest the purchase index has been since the week ended May 7.
"The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation," said Michael Fratantoni, MBA's vice president of research and economics. "While the increase was magnified somewhat by the comparison to the holiday week, the level of purchase applications on a seasonally adjusted basis is now at its highest level since the expiration of the homebuyer tax credit."
The market share of refi applications fell to 78.6% of all new loan activity, down from 80.3% the prior week. MBA tracks activity through its proprietary application index.
MBA reported that the average contract interest rate for a 30-year fixed rate mortgage increased from 4.46% to 4.50%, with points falling to 0.88 from 1.12 (including the origination fee) for loans with an 80% loan-to-value ratio. This is the highest rate for these loans since the start of September, the survey found.
For the 15-year FRM rates decreased from 3.87% to 3.83%, while points increased from 0.91 to 1.04.
