Mortgage demand jumped last week, with applications for both
refinancing and home purchases showing strong increases in the
first full week after the holidays.
Applications to refinance an existing mortgage were up a
seasonally adjusted 15 percent compared to the previous week, while
applications for mortgages to buy a home were up 13 percent, 5
percent better than the same week one year ago. That's according to
the weekly rate survey from the Mortgage Bankers Association,
In unadjusted terms, applications of all types were up 45
percent for the week. Refinancing made up 82 percent of all
mortgage applications, unchanged from the week before.
Rates jump on jumbo loans
Interest rates for most types of mortgages held fairly steady,
although a sharp increase was seen in average rates for jumbo
mortgages (balances in excess of $417,500). The average rate on
30-year jumbo loans was 3.88 percent last week, up from 3.78
percent, with an average of 0.38 points in fees and discounts,
unchanged from the week before.
Interest rates both 30-year and 15-year fixed-rate mortgages
with conforming balances remained unchanged for the week, although
fees and points declined on both. Average interest rates on the two
loan types stayed at 3.61 percent and 2.88 percent, respectively.
Average fees and discounts on the 30-year loan were down slightly
to 0.38 points, down from 0.41 the week before, while 15-year loans
saw a more substantial decline to 0.27 points, down from 0.39 the
Average interest rates on 30-year FHA fixed-rate mortgages rose
to 3.39 percent, up from 3.35 percent previously, while fees and
discounts dropped to 0.58 points, down from 0.69 previously. The
overall impact meant the effective rate increased slightly.
Initial interest rates on 5/1 adjustable rate mortgages (ARMs)
rose to 2.66 percent last week, up from 2.64 percent, while the
average points paid fell to 0.34 from 037, with the overall result
an increase in the effective rate.
All figures are based on mortgages with an 80 percent
First published on MortgageLoan.com at: