Industry News

Refis boost real estate loan activity

Interest rates rise for second week

Overall mortgage applications grew 1.5 percent last week on a seasonally adjusted basis from the week before, fueled by a surge in refinancings, according to the Mortgage Bankers Association's weekly survey. The seasonally adjusted refinance index increased by 7 percent to 2,353.7 from 2,198.7 one week earlier, while the purchase index decreased by 2.6 percent to 500.3 from 513.4 the previous week. The refinance share of mortgage activity increased to 45.6 percent of total applications from 42.9 percent the previous week. The adjustable-rate-mortgage share of activity increased to 29.8 percent of total applications from 28.2 percent the previous week. The average contract interest rate for 30-year fixed-rate mortgages increased to 5.81 percent from 5.72 percent one week earlier. Points including the origination fee increased to 1.21 from 1.18 for 80 percent loan-to-value ratio loans. The average contract interest rate for 15-year fixed-rate mortgages increased to 5.38 percent fro...