The volume of mortgage applications increased during the week ending Sept. 21 as average contract interest rates rose across the board, according to the Weekly Mortgage Applications Survey released by the Mortgage Bankers Association.
The Market Composite Index, a measure of mortgage loan application volume, rose 2.9% on a seasonally adjusted basis and increase 2% on an unadjusted basis.
The Refinance Index increased 3%. The Purchase Index increased 3% on a seasonally adjusted basis and rose 2% on an unadjusted basis. The unadjusted Purchase Index was 4% higher than the same week one year ago.
During the period, refinance applications accounted for 39.4% of all activity, up from 39% in the previous period. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 6.5%.
Applications for FHA loans took a 10.4% share, down from 10.6%. The VA share increased to 10.1% from 10%. USDA applications accounted for 0.7%, remaining unchanged from the previous period.
Rates for 30-year fixed-rate mortgages with conforming loan balances increase to 4.97%, their highest level since April 2011, from 4.88%. Points increased to 0.47 from 0.44. The average rate for 30-year fixed-rate mortgages with jumbo loan balances increased to 4.92% from 4.77%, with points increasing to 0.30 from 0.28.
The 30-year fixed-rate mortgage backed by the FHA averaged 4.94%, up from 4.9%, with points increasing to 0.83 from 0.73. Rates for the 15-year fixed-rate mortgage increased to 4.38% from 4.3%, with points increasing to 0.52 from 0.49.
The average rate for 5/1 ARMs increased to its highest level in the history of the survey, 4.22% from 4.17%, with points increasing to 0.60 from 0.29.