(RTTNews) - Industry data released on Wednesday showed that mortgage application volume increased 15.8 percent last week, as average interest rates decreased across the board and the refinance index soared over 25 percent to its highest level since 2003.
The Mortgage Bankers Association revealed that its market index of mortgage application volume climbed 15.8 percent on a seasonally adjusted basis for the week of January 9th. The Market Composite Index was 1324.8 compared to 1143.8 last week. On an unadjusted basis the Index shot up 95.7 percent and was down 52.4 percent on a year over year basis.
The Refinance Index increased 25.6 percent to 7414.1 from 5904.5 last week. Accordingly, 85.3 percent of percent of mortgage activity took place through refinancing last week, up from 79.8 percent in the previous week.
The Refinance Index is at its highest level since the week ending June 27, 2003, when it was 8599.1.
The conventional and government purchase indices both declined, with the conventional purchase index sliding 10.3 percent and the government purchase index, largely made up of FHA loans, plunging 21.8 percent.
The adjustable-rate mortgage (ARM) share of activity ticked up 1.1 percent from 0.9 percent of total applications from the previous week.
Interest rates decreased across the board, with 30-year fixed-rate mortgages sliding below 5 percent to 4.89 percent from 5.07 percent last week. The rates for 15-year fixed-rate mortgages also slid down to 4.63 percent from 4.67 percent in the previous week. One-year ARMs saw a slight decrease with their contrast interest rates hitting 5.89 percent from 5.90 percent last week.
by RTT Staff Writer
Original Article HERE