By Gretchen Wegrich
After decreasing as predicted during the holiday season, mortgage applications shot up 15.2 percent over the week of January 6-12 as both housing purchases and refinancing activity showed improvements.
Data released by the Mortgage Bankers Association revealed that refinancing applications were up 15 percent from the previous week, while the seasonally adjusted purchase index rose 13 percent during the same period. Purchase applications reached the highest level in two years.
Refinancing activity continued to carry the vast majority of mortgage loan activity at 82 percent of total loan applications, a figure that remained consistent with earlier data.
Mortgage rate remained steady or showed increases. The 30-year conforming fixed-rate mortgage held steady at 3.61 percent.
Conversely, the 30-year fixed-rate jumbo loan mortgage shifted upwards from 3.78 percent to 3.88 percent during the same period of time. The average 30-year fixed-rate mortgage (FRM) supported by the FHA grew from 3.35 percent to 3.39 percent.
Additionally, 15-year FRM hovered at 2.88 percent while the average rate of the 5/1 ARM grew .02 percent to 2.66 percent.
The Mortgage Banker Association’s Weekly Application Survey includes more than 75 percent of US residential mortgage applications. Participants in the survey typically include mortgage bankers, commercial banks and thrifts. All rates are based on mortgage loans with an 80 percent loan-to-value ratio, including origination fees.
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