Mortgage refinancings jumped nearly 21 percent last week, with overall mortgage applications increasing 11.9 percent on a seasonally adjusted basis, according to the Mortgage Bankers Association’s weekly survey.

The MBA seasonally adjusted purchase index increased by 6.2 percent to 467.1 from 440 the previous week. The seasonally adjusted refinance index increased by 20.9 percent to 1,982.7 from 1,640.5 one week earlier.

The refinance share of mortgage activity increased to 40.7 percent of total applications from 37.2 percent the previous week. The adjustable-rate-mortgage share of activity decreased to 33.6 percent of total applications from 34.2 percent the previous week.

“The jump in refinance loans comes after a fairly steady drop in rates over the last month,” said Jay Brinkmann, MBA’s VP of research and economics. “More importantly, rates are now about half of a percentage point below where they were this time last year, creating a refinance incentive for many borrowers who have taken out home loans since the middle of last summer.”

The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.75 percent from 5.8 percent one week earlier. Points including the origination fee increased to 1.45 from 1.24 the previous week for 80 percent loan-to-value ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.15 percent from 5.16 percent one week earlier. Points including the origination fee decreased to 1.33 from 1.39 the previous week for 80 percent loan-to-value ratio loans.

The average contract interest rate for one-year adjustable-rate mortgages increased to 3.95 percent from 3.85 percent one week earlier. Points including the origination fee increased to 1.16 from 1.02 the previous week for 80 percent loan-to-value ratio loans.

Washington, D.C.-based Mortgage Bankers Association is a national association representing the real estate finance industry.

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