Despite the fact that the average rate for a 30-year mortgage rose to its highest level since April 2011, mortgage application volume increased 2.9% on an adjusted basis during the week ended September 21, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
It was the second consecutive week that mortgage application volume increased. Applications had fallen for seven of the previous 10 weeks.
Applications for refinances increased 3% and applications for purchases also increased 3%.
On an unadjusted basis, total volume increased 2% compared with the previous week. Applications for purchases increased 2% on an unadjusted basis and were 4% higher compared with the same week one year earlier.
The refinance share of mortgage activity increased to 39.4% of total applications, up from 39.0% the previous week.
The adjustable-rate mortgage (ARM) share of activity remained unchanged at 6.5% of total applications.
The average rate for a 30-year fixed-rate mortgage, based on closings, was 4.97%, up from 4.88% the previous week.
The average rate for a 5/1 ARM was 4.22% up from 4.17% to reach the highest level since the inception of the survey.