Mortgage application volume rose for the first time after three straight weeks of declines as interest rates saw some much needed relief, the Mortgage Bankers Association said today.
The home loan index increased 8.2 percent on a seasonally adjusted basis during the week ending October 30, or 7.9 percent unadjusted, compared with one week earlier.
Of course, the rally was all about refinancing, as purchases decreased 3.0 percent from the previous week and were off 3.4 percent compared with the same week a year ago.
Refinances increased 14.5 percent compared with the previous week as borrowers took advantage of a break in interest rates.
As a result, the refinance share of mortgage activity increased to 66.1 percent of total applications from 62.3 percent one week earlier.
The 30-year fixed slipped back below five percent to 4.97 percent, seven basis points better than the 5.04 average seen a week ago.
The 15-year fixed was the biggest mover, sliding 20 basis points lower to 4.33 percent, making it a pretty attractive option for those with more money to burn.
Finally, the one-year adjustable-rate mortgage increased to 6.83 percent from 6.79 percent, which may explain why the ARM-share of apps fell to 6.1 percent from 6.9 percent.
The MBA’s weekly survey, conducted since 1990, covers more than half of all retail, residential mortgage applications, but does not factor out declined or multiple apps.
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