Mortgage Applications Continue Rise as Rates Fall

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By Trey Thoelcke Published
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The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a increase of 4.7% in the group’s seasonally adjusted composite index. The seasonally adjusted purchase index increased by 4.00% from the prior week’s report.

On an unadjusted basis, the composite index increased by 7.0% week-over-week. The unadjusted purchase index increased by 2.0% for the week, but it is 15% lower year-over-year.

The MBA’s refinance index increased by 10%, and the share of refinancings rose by two points to 64% of all applications. Adjustable rate mortgage loans accounted for 7.0% of all applications, down from 8.0% the prior week.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage decreased from 4.66% to 4.58%, the lowest level since November 2013. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.58% to 4.57%. The average interest rate for a 15-year fixed-rate mortgage fell from 3.72% to 3.68%.

The contract interest rate for a 5/1 adjustable rate mortgage loan decreased from 3.28% to 3.23%, the lowest level since December 2013.

The drop in interest rates in the past two weeks are in contrast with the recent trend of rising rates since November. Mortgage applications fell to their lowest level since December 2000 at the end of 2013, following the announcement by the U.S. Federal Reserve that it would begin tapering its $85 billion per month bond-buying program.

This turnaround in purchase applications could signal a strong spring season for the housing market.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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