Driven by refis, mortgage apps surge: MBA
WASHINGTON (9/3/15)--Mortgage application activity roared during the week ending Aug. 28, according to the Mortgage Bankers Association’s (MBA) weekly survey.
Refinance applications jumped 16.8% during the week, while purchase applications increased by 4.1%. Together, the two segments pushed the overall index higher by 11.3%, the largest step up since January (Economy.com Sept. 2).
“The U.S. economy performed well in the second quarter with real (gross domestic product) at 3.7%,” said Michael Ferlez, Moody’s analyst (Economy.com). “Improving conditions in the U.S. economy combined with low mortgage rates should translate into an increase in purchase activity.”
Refinancings rose 18.3% on a monthly basis during the week and 22.2% on a yearly basis, according to the MBA. Purchase applications ticked up 0.1% monthly, but 20.4% annually.
For the week ending Aug. 14, refinance applications made up 58.7% of all applications, up from 55.3% the prior week.
The contract rate for 30-year, fixed-rate mortgages remained unchanged at 4.08%, and came in 17 basis points lower from a year ago.
For 30-year, fixed-rate jumbo mortgages, the rate ticked up to 4.05% from 4%, while the rate for five-year, adjustable-rate mortgages increased 9 basis points to 3.05%. Annually, that rate is down by 14 basis points.