Applications for home-purchase loans and refinancings increased last week as interest rates dipped, the Mortgage Bankers Association reported today in its weekly survey.

The market composite index, a measure of mortgage loan application volume, increased 3.6 percent, growing to 680.7 on a seasonally adjusted basis from 657.2 one week earlier. Refinancings posted a 4.9 percent gain over the previous week, while the index that tracks new purchase loans increased by 2.6 percent.

Borrowing costs were down last week across all loan types, with the average contract interest rate for 30-year fixed-rate mortgages sliding to 6.1 percent from 6.14 percent, the 15-year fixed rate down from 5.83 percent to 5.82 percent, and the one-year adjustable-rate mortgage (ARM) sinking from 5.79 percent to 5.71 percent.

Points, which are loan-processing fees expressed as a percent of the total loan amount, averaged 1.48 on the 30-year loans, 1.25 on the 15-year, and 0.73 on one-year ARMs. Statistics, which include the origination fee, are based on loan-to-value ratios of 80 percent.

According to the MBA, the refinance share of mortgage activity now stands at 41.8 percent of total applications, up from 41.5 percent the previous week, while the ARM share of activity increased to 18 percent from 17.9 percent.

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
Thank you for subscribing to Morning Headlines.
Back to top
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