Application volume increased by 4.1% on a seasonally adjusted basis for the week ended Dec. 9, as rates fell to their lowest levels this year, according to the Mortgage Bankers Association.
The Refinance Index increased by 9.3% from the previous week, as the market share of refi applications rose to 79.7%—their highest market share this year—from 76% one week prior.
But purchase application volume suffered last week, down 8.2% on a seasonally adjusted basis. On an unadjusted basis, it is down less than 4.3% from the same week in 2010.
All four categories of fixed-rate loans tracked were at their lowest rate for 2011. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) was down six basis points to 4.12%, while for 30-year FRMs with jumbo loan balances, the average contract rate fell by five basis points to 4.47%.
The average contract interest rate for 30-year Federal Housing Administration-insured loans declined by four basis points to 3.94%, while the average contract interest rate for 15-year FRMs fell nine basis points to 3.44%.
