US Mortgage Activity Jumps

---

Overall mortgage applications in the U.S. increased last week, led by gains in both refinancing and purchasing applications, according to data from the Mortgage Bankers Association.

Mortgage applications increased 6.4 percent last week compared to the week before, after falling by a minimal 0.6 percent the week before. 

The refinance index increased by 9 percent from the previous week. The refinance share of mortgage activity increased to 67 percent of all applications, the highest since June 2013. 

The seasonally adjusted purchase index increased by two percent last week. 

Fluctuating mortgage rates impact mortgage activity. Last week Freddie Mac reported a dip in mortgage rates. However, the MBA expects increases in mortgage rates for years to come, according to a report release yesterday. 

More from today's report:

• The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.33 percent, the lowest rate since June 2013,  from 4.39 percent, with points decreasing to 0.26 from  0.41 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  The effective rate decreased from last week.

• The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.36 percent, the lowest rate since June 2013,  from 4.43 percent, with points increasing to 0.27 from 0.26 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.

• The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.06 percent, the lowest rate since June 2013, from 4.15 percent, with points decreasing to 0.17 from 0.27 (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 3.42 percent, the lowest rate since June 2013, from 3.51 percent, with points remaining unchanged at 0.30 (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 3.17 percent, the lowest rate since June 2013, from 3.25 percent, with points increasing to 0.38 from 0.26 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.