Mortgage Applications in U.S. Up During Holiday Season

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Mortgage applications in the U.S. increased from the previous week, according to the Mortgage Bankers Association.

The number of mortgage applications included an adjustment for the New Year's Day holiday, while the previous week accounted for the Christmas holiday. 

Overall mortgage applications increased 2.6 percent for the week ending January 3, compared to the prior week. 

The refinance index increased five percent from the previous week, after falling nine percent the prior week. The refinance share of mortgage activity was 63 percent of total applications, remaining unchanged from the previous week. 

The adjustable-rate mortgage share of activity was unchanged at eight percent. It reached a five-year high last month.

The seasonally adjusted purchase index decreased one percent from one week earlier, but increased two percent the week prior, the MBA reported.

More from the report:

• The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged at 4.72 percent, with points unchanged at 0.28 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

• The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) remained unchanged at 4.66 percent, with points decreasing to 0.12 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 30-year fixed-rate mortgages backed by the FHA increased to 4.36 percent from 4.35 percent, with points unchanged at 0.15 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

• The average contract interest rate for 15-year fixed-rate mortgages increased to 3.77 percent from 3.73 percent, with points decreasing to 0.34 from 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

• The average contract interest rate for 5/1 ARMs increased to 3.33 percent from 3.31 percent, with points decreasing to 0.44 from 0.46 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.