WASHINGTON (1/14/16)--Mortgage application activity jumped 21.3% for the week ending Jan. 8, with purchase application activity climbing to its highest level since 2010.
In its weekly mortgage applications survey, the Mortgage Bankers Association (MBA) found that refinance activity surged 24% from the previous week, while purchase activity rose 18%.
“MBA’s purchase mortgage application index reached its second highest level since May 2010 on a seasonally adjusted basis last week, second only to the week prior to the implementation of the Know Before You Owe rules,” said Lynn Fisher, MBA vice president of research and economics.
Refinances made up 55.8% of all mortgage application activity during the week, up from 55.4% the previous week.
The adjustable-rate mortgage (ARM) share of activity rose to 5.1% of all applications, while the Federal Housing Administration share of mortgages fell to 14.4% from 14.6%.
“Bolstered by strong fourth quarter growth in jobs and continuing low rates, the results are similar to levels we saw in early December, suggesting that the purchase market’s strong finish to 2015 may be continuing,” Fisher said. “While refinances also increased on a holiday-adjusted basis, refinance activity was down 38% relative to a year ago when rates dove below 4%.”
The MBA also reported that the 30-year fixed-rate mortgage rate for the week ending Jan. 8 fell to 4.12% from 4.2%. For 30-year fixed-rate jumbo loans, the rate dropped to 4.02% from 4.09%.
Additionally, the 15-year fixed-rate mortgage rate slipped to 3.42% from 3.47%, and the average contract rate for 5/1 ARMs decreased to 3.14% from 3.19%.