Applications for refinancings jumped 17.4 percent last week as interest rates on 30-year fixed-rate mortgages dipped below 5 percent for the first time since May, the Mortgage Bankers Association said in releasing the results of its Weekly Applications Survey.

Applications for purchase loans were also up 5.6 percent from a week earlier, helping push an index measuring all applications up by a seasonally adjusted 12.8 percent for the week ending Sept. 18, the MBA said.

An index measuring applications for FHA and other government-backed purchase loans was at the highest level ever recorded in the survey, and the share of purchase applications that were government-insured was 45.7 percent, the highest since November 1990.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.97 percent from 5.08 percent, with points increasing to 1.12 from 0.98 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 4.41 percent, with points decreasing to 1.05 from 1.12 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year adjustable-rate mortgages decreased to 6.52 percent from 6.61 percent, with points increasing to 0.28 from 0.2 (including the origination fee) for 80 percent LTV loans.

The refinance share of mortgage activity increased to 63.8 percent of total applications from 61 percent the previous week. The ARM share of activity increased to 6.7 percent from 6 percent of total applications from the previous week.

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Real estate news and analysis that gives you the inside track. Subscribe to Inman Select for 50% off.SUBSCRIBE NOW×
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