Just one week after sliding nearly 25 percent, mortgage application volume shot sharply higher, according to the latest survey from the MBA.
On a seasonally adjusted basis, home loan apps increased a whopping 45.7 percent for the week ending February 13.
On an unadjusted basis, apps jumped 47.7 percent compared to one week earlier, and were up 5.2 percent compared to the same week a year ago.
The surge was led by a 64.3 percent increase in refinance applications and a 10 percent rise in purchase apps.
The refinance share of mortgage activity climbed to 74.2 percent of total applications, up from 66.7 percent the previous week, thanks in part to lower mortgage rates.
The average interest rate on a 30-year fixed fell to 4.99 percent from 5.19 percent, while the 15-year fixed dropped to 4.66 percent from 5.00 percent.
The one-year adjustable-rate mortgage decreased to 6.10 percent from 6.22 percent, which explains why the ARM-share of total apps fell to just 1.7 percent from 2.5 percent a week before.
The MBA’s weekly survey covers roughly half of all retail residential loan applications, but doesn’t take into account multiple or declined apps, which have surely risen as underwriting guidelines became more rigid.
(photo: travisisaacs)
Related Topics:
