Housing

Mortgage Applications Rise Sharply Again

New home
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The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a rise of 15.2% in the group’s seasonally adjusted composite index, following a rise of 11.7% for the previous week.

Applications for refinancing remained flat at 82% (seasonally adjusted). The seasonally adjusted purchase applications index rose by 13% from the last report. On an unadjusted basis, the composite index rose 45% week-over-week.

For the second consecutive week, mortgage applications have risen sharply. The historically low interest rates certainly have a lot to do with that, especially for folks looking to refinance existing mortgages.

The average contract interest rate for a conforming 30-year fixed-rate mortgage remained unchanged at 3.61%. The rate for a jumbo 30-year fixed-rate mortgage increased, from 3.78% to 3.88%. The average interest rate for a 15-year fixed-rate mortgage also remained unchanged at 2.88%.

The contract interest rate for a 5/1 adjustable rate mortgage decreased from 2.64% to 2.66%.

The home-financing and home-buying market is in its usual seasonal lull. Housing inventories are lower in many metropolitan areas as home sellers have taken houses off the market for the holiday season. Inventory — and sales — should begin to pick up in the next few weeks.

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