Refinance activity pushed loan application volume higher during the week ending September 18, according to the Mortgage Bankers Association.
Home loan apps were up 12.8 percent on a seasonally adjusted basis compared to the holiday shortened week that preceded it (24.6 percent unadjusted) and 14 percent from a year ago.
The refinance index surged 17.4 percent from the previous week as the 30-year fixed slipped below five percent for the first time since mid-May.
Purchase activity also increased 5.6 percent, thanks to applications for government-insured loans.
In fact, the government purchased index is at its highest level ever recorded and the share of purchase apps that were government-insured was 45.7 percent, the highest share since November 1990.
Let’s hope the FHA is up to the challenge.
The refinance share of mortgage activity climbed to 63.8 percent of total apps from 61 percent a week earlier as rates continued to improve.
The benchmark 30-year fixed averaged 4.97 percent, down from 5.08 percent, while the 15-fixed remained unchanged at 4.41 percent.
The one-year adjustable-rate mortgage decreased to 6.52 percent from 6.61 percent, pushing the ARM-share of applications to 6.7 percent of the total from six percent.
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