WASHINGTON (8/7/14)--Mortgage application activity picked up during the week that ended Aug. 1, the Mortgage Bankers Association reported in its weekly applications survey Wednesday.
The composite index climbed 1.6%, driven by a 3.8% leap in refinancing activity. Purchase applications, however, dropped 1.3% and continue the weak pace they have logged throughout most of this year (Economy.com Aug. 6).
Averaged over the last four weeks, refinance activity has climbed 2%, but falls 41% lower than last year at this time. Refinances now make up 55% of all applications.
Purchase applications are down 5.7% over the past month and sit 14.6% lower year-over-year.
"As we enter August, applications for home purchase mortgages remain historically low, with no sign of the measurable rebound expected by most at the beginning of the year," said Moody's analyst Gregory Bird (Economy.com). He added, "Meanwhile, refinancing remains lackluster, near a six-year low."
Mortgage interest rates for 30-year fixed-rate conforming mortgages edged up 2 basis points for the week to 4.35%, which is 26 basis points below levels seen a year ago.
The 30-year jumbo mortgage rate increased 4 basis points to 4.26%, while the five-year adjustable-rate mortgage rate inched up by 1 basis point to 3.32%.