US Mortgage Applications Increase

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The number of mortgage applications in the U.S. increased 1.3 percent from a week ago, according to data from the Mortgage Bankers Association. 

The increase represents a shift in buying patterns. The number of mortgage applications fell 4.6 percent two weeks ago, mostly attributed to fluctuating mortgage rates, as uncertainty grows in the market. 

The group's refinance index increased two percent from the previous week, after falling eight percent two weeks ago. 

The refinance share of mortgage activity was 61 percent of all applications, compared to 60 the week before. The adjustable-rate mortgage share of activity decreased to seven percent of all applications.

The group reported the average contract interest rate for 30-year fixed-rate mortgages with conforming balances dropped to 4.73 percent from 4.80 percent. 

More data from the agency:

• The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.71 percent from 4.78 percent, with points decreasing to 0.25 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week. This is the second consecutive week that the 30-year fixed interest rate for jumbo loans has been lower than the 30-year fixed rate for conforming loans.

• The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.48 percent from 4.52 percent,with points decreasing to 0.03 from 0.32 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

• The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.75 percent from 3.84 percent, with points decreasing to 0.30 from 0.35 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

• The average contract interest rate for 5/1 ARMs decreased to 3.49 percent from 3.50 percent,with points remaining unchanged at 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.