Refinance applications rose 11% from the previous week, while purchase applications climbed 5%. Annually, purchase applications have climbed 22%.
While applications continue to rise, mortgage rates have slimmed down of late.
The average rate for the 30-year fixed-rate mortgage dropped to 4.02% from 4.06% during the week, its lowest level since October, according to the MBA. Similarly, the 30-year rate as tracked by Freddie Mac averaged 3.79%, down from last week’s level of 3.81%.
“The yield on the 10-year Treasury stabilized around 2% this week, and the 30-year mortgage rate dipped 2 basis points to 3.79%,” said Sean Becketti, Freddie Mac chief economist. “The recent market turmoil has given the Fed pause; as was universally expected, the Fed stood pat this week but kept its options open for a rate increase in March.”
The 15-year fixed-rate mortgage rate this week averaged 3.07%, down from 3.1% the prior week, according to Freddie Mac, while the five-year Treasury-indexed hybrid adjustable-rate mortgage rate averaged 2.9%, down from 2.91%.
“This week’s housing (data) confirms the momentum of home sales going into 2016,” Becketti added. “A hesitant Fed, sub-4% mortgage rates (at least for a little while longer), and strong housing fundamentals should generate a 3% increase in home sales this year.”