Mortgage application volume rose to its highest level in almost four years last week, according to the Mortgage Bankers Association latest survey.
The group’s Market Composite Index for the week ended February 1 climbed three percent on a seasonally adjusted basis to 1,086.6, its highest point since the week ended March 26, 2004.
On an unadjusted basis, the Index increased 4.4 percent compared with the previous week and was up a whopping 73.2 percent compared to the same period last year.
The rise in application volume was helped by a strong increase in purchase activity, while the refinance share of applications finally dipped, falling to 69.2 percent of all applications, down from 73 percent.
Interest rates showed little movement week-over-week, with the traditional 30-year fixed rate mortgage averaging 5.61 percent, up slightly from 5.60 percent a week earlier.
The 15-year fixed also worsened, climbing to 5.09 percent from 5.04 percent the week prior.
The adjustable-rate mortgage (ARM) share of activity increased to 8.8 from 8.6 percent of all applications from the previous week.
Related to that, interest rates on one-year ARMs actually dipped during the week, falling to 5.62 percent from 5.70 percent a week earlier.
(photo: gadl)
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