Mortgage Applications Regain Traction after Sluggishness, Rates Continue to Fall

By Stevie Duffin Updated on 5/1/2013

By Daniel Duffield

For the week that ended on April 19, applications for mortgage loans increased 1.8% compared with the previous week, according to a statement from an industry trade group made on Wednesday.

The Mortgage Bankers Association also reported that this increase follows sluggish gains of 0.2% in the last report.

In terms of the most significant rise, the refinance index saw a 3% growth in applications on the week ending on April 19.

In contrast, the seasonally corrected home purchase index saw a reversal from the previous week, decreasing 1.4% after reaching a near-three year peak the week prior.

Looking at the ratios of mortgage volume, refinance activity remained consistent, averaging 75% for the third consecutive week.

Adjustable-rate mortgages also did not see any change at this time, remaining at 4% of all mortgage applications.

Simultaneously, the standard conventional 30-year fixed-rate mortgage (FRM) decreased from 3.65% the previous week to 3.60%, reaching the lowest point since December 2012.

The average jumbo 30-year FRM loan balance grew from 3.75% the week earlier to 3.80%.

Mortgage rates continue to decline during the spring season. In terms of FHA loans, the FHA 30-year FRM saw a decrease in interest rates from 3.37% the previous week to 3.34%.

Moreover, rates for the 5/1 year adjustable-rate mortgage (ARM) decreased from 2.62% the previous week to 2.55%.

Likewise, the conventional 15-year FRM saw an average decrease in mortgage rates of 0.05%, as rates decreased from 2.89% a week earlier to 2.84%, reaching the lowest interest rate since December 2012.