Mortgage refinance demand picked up this week, with applications
for new loans up by a seasonally adjusted 4 percent over the week
before, according to today's figures from the Mortgage Bankers
Refinance applications increased despite a continuing trend
toward higher interest rates that has seen average rates on the
most popular type of loan increase in seven out of the last eight
Meanwhile, applications for mortgages to purchase a home
increased a seasonally adjusted two percent over the week before.
More significantly, purchase applications were up 16 percent from
the same week one year ago and were at their highest adjusted level
since May 2010.
Refinancing made up 78 percent of all mortgage applications,
down from 79 percent the previous week and the lowest share of
total applications since last July.
Rates up across the board
Average interest rates on conventional 30-year fixed-rate
mortgages rose to 3.73 percent last week, according to the MBA, up
from 3.67 percent the week before. The average on 15-year mortgages
rose to 3.00 percent, up from 2.95 percent previously.
For FHA mortgages, the average on 30-year fixed-rate loans rose
to 3.53 percent, up from 3.48 percent the week before, while the
average on 30-year jumbo mortgages (over $417,500) rose to 3.96
percent, up from 3.95 percent.
Finally, initial interest rates on 5/1 adjustable rate mortgages
(ARMs) jumped to 2.72 percent, up from 2.60 percent the week
All figures are based on mortgages with an 80 percent
loan-to-value ratio. The MBA weekly survey covers 75 percent of all
U.S. mortgage applications.
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