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.
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.