Mortgage apps up as rates fall

Mortgage apps rose last week as refis increased

Mortgage apps up as rates fall
Mortgage applications were up 2.9% last week from the week prior, according to new data from the Mortgage Bankers Association. While refinance apps were up, purchase apps fell despite dropping interest rates.

The MBA’s Market Composite Index, which measures loan application volume, rose 2.9% on a seasonally adjusted basis. On an unadjusted basis, the index was up 3% last week from the week prior. The Refinance Index was up 5% from the previous week, while the seasonally adjusted Purchase Index fell 0.1%. On an unadjusted basis, the Purchase Index dropped 0.2% from the previous week and was 14% lower than the same week a year ago.

The refinance share of mortgage activity rose to 63.8% of all applications from 62.7% the week prior. The adjustable-rate mortgage share climbed to 4.5% of total applications.

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances fell to 3.62% – the lowest level since July – from 3.66% the previous week. The average rate for 30-year FRMs with jumbo loan balances fell to 3.60% from 3.64%.

The average rate for 5/1 ARMs held steady at 2.92%, according to the MBA.