Mortgage application volume increased 32.2 percent during the holiday shortened week ending January 4, 2008, following three weeks of sharp declines, according to The Mortgage Bankers Association latest weekly survey.
The group’s seasonally adjusted mortgage application index rose to 706.0, up 32.2 percent from 533.9 just a week earlier, likely due to favorable interest rates and the culmination of the holiday season.
On an unadjusted basis, the index rose 81.1 percent compared to the previous week, and was 8.7 percent higher compared to the same week a year ago.
The huge increase was led by a surge in refinance activity, which jumped 53.9 percent from the previous week.
The refinance share of mortgage activity climbed to 57.7 percent of total applications, up from 50.9 percent the week prior.
Interest rates on fixed-rate mortgages continued to fall, though adjustable-rate mortgages saw a slight increase from a week earlier.
The average interest rate for a 30-year fixed-rate mortgage decreased sharply to 5.73 percent from 6.05 percent, while the 15-year fixed dipped to 5.21 percent from 5.61 percent.
Meanwhile, the average interest rate for one-year ARMs increased to 6.04 percent from 6.00 percent, moving higher than the going rate on a fixed loan.
The adjustable-rate mortgage (ARM) share of activity decreased to 9.3 from 9.8 percent of total applications from the previous week.
The MBA’s weekly survey, compiled every week since 1990, covers about half of all U.S. retail residential mortgage applications.
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