Refinance demand pushed mortgage applications higher last week, according to the Mortgage Bankers Association.
The market composite index increased 7.5 percent on a seasonally adjusted basis (6.3% unadjusted) for the week ending August 21, and application volume was 34.1 percent higher than a year ago.
The refinance index increased 12.7 percent thanks to relatively low interest rates, its third increase in the past month.
Meanwhile, purchases dragged their feet in the sand, climbing just one percent from the previous week, solely on increased demand for government loans.
It was the fourth consecutive gain for purchase activity, but they’ve been incidental improvements considering the time of year.
As a result, the refinance share of mortgage activity has been steadily climbing, rising to 56.5 percent of total applications from 53.3 percent a week earlier.
Meanwhile interest rates have inched back up, with the popular 30-year fixed climbing to 5.24 percent from 5.15 percent.
The 15-year fixed averaged 4.58 percent, up from 4.52 percent, and the one-year ARM increased to 6.74 percent from 6.66 percent.
The MBA’s weekly survey covers roughly half of all retail residential home loan applications, but doesn’t throw out declined or multiple apps.
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