Mortgage Applications Inch Higher in U.S.

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Mortgage applications in the U.S. increased slightly from the previous week, which included an adjustment for the Thanksgiving holiday, according to the Mortgage Bankers Association. 

Overall mortgage applications increased 1.0 percent for the week ending Dec. 6, compared to the prior week.

The refinance index increased 2 percent from the previous week and was 16 percent lower than the week before Thanksgiving, the MBA reports. The refinance share of all mortgage activity grew to 65 percent from 63 percent the previous week. 

The purchase index increase 1 percent from the prior week but was 3 percent lower than the week before Thanksgiving. 

After increasing to 8.1 percent of total applications, the adjustable-rate mortgage share of activity is at its highest level since July of 2008.

Last week, mortgage rates increased for the second consecutive week.

More from the report:

• The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.61 percent, the highest rate since September, from 4.51 percent, with points decreasing to 0.26 from  0.38 (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) increased to 4.59 percent, the highest rate since September, from 4.49 percent, with points decreasing to 0.15 from 0.24 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from last week.

• The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.30 percent, the highest rate since September, from 4.17 percent, with points increasing to 0.38 from 0.36 (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 3.66 percent, the highest rate since September, from 3.56 percent, with points decreasing to 0.31 from 0.32 (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 3.11 percent from 3.09 percent, with points increasing to 0.35 from 0.28 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from last week.