Overall mortgage application volume posted strong growth during the first week of January as borrowers took advantage of falling interest rates, the Mortgage Bankers Association reported today.

The market composite index, which measures total home loan volume, increased 16.6 percent last week, rising to 671.1 on a seasonally adjusted basis from 575.6 one week earlier.

Refinancing activity saw the largest gains last week as the seasonally adjusted refinance index shot up 17.3 percent from the week before, followed closely by a 16.2 percent jump in the purchase index.

The refinance share of mortgage activity increased to 48.4 percent of total applications last week, while the adjustable-rate mortgage (ARM) share decreased to 20.1 percent, its lowest in three-and-a-half years.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.13 percent, compared with 6.22 percent a week earlier, with points including the origination fee increasing to 0.94 from 0.92 for 80 percent loan-to-value-ratio loans. Points, which are fees charged by lenders for loan processing, are expressed as a percent of the total loan amount.

The average rate for 15-year fixed-rate mortgages decreased to 5.85 percent from 5.93 percent, with points dropping to 0.98 from 1 for 80 percent loan-to-value-ratio loans.

Average rates for one-year ARMs decreased to 5.79 percent from 5.84 percent, and points held at 0.83 for 80 percent loan-to-value-ratio loans.

The Mortgage Bankers Association survey covers approximately 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription