WASHINGTON (8/28/14)--Mortgage applications increased 2.8% from one week earlier, according to data from the Mortgage Bankers Association's (MBA) weekly mortgage applications survey for the week ending Aug. 22.
MBA's market composite index, a measure of mortgage loan application volume, increased 2.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index rose 2% compared with the previous week.
The refinance index increased 3% from the previous week, while the seasonally adjusted purchase index gained 3% from one week earlier. The unadjusted purchase index increased 1% compared with the previous week and was 11% lower than the same week one year ago.
The refinance share of mortgage activity rose to 56% of total applications, the highest level since March 2014, from 55% the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 8% of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.28% from 4.29%, with points decreasing to 0.25 from 0.26 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
For 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000), the average contract rate ticked up to 4.22% from 4.18%, with points increasing to 0.28 from 0.23 (including the origination fee) for 80% LTV loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the Federal Housing Administration fell to 3.98%, the lowest since June 2013, from 3.99%. Fifteen-year fixed-rate mortgages saw the average contract interest rate jump to 3.47% from 3.44%.
The average contract interest rate for 5/1 ARMs remained unchanged at 3.10%, with points increasing to 0.52 from 0.44 (including the origination fee) for 80% LTV loans.