Mortgage application volume jumped 7.3% on an adjusted basis during the week ended Dec. 5, compared to the previous week, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
It was enough to offset the previous week's overall decline of 7.3%, which was due mainly to the Thanksgiving holiday weekend.
On an unadjusted basis, volume increased 52% compared with the previous week.
Applications for refinances jumped a whopping 13% while applications for purchases rose 1%.
On an unadjusted basis, applications for purchases were up 37% compared with the previous week, but were 4% lower compared to the same week one year ago.
The refinance share of mortgage activity increased to 64% of total applications from 60% the previous week.
Applications for refinances were up mainly due to lower interest rates; however, that was not the case the previous week, when refinances fell despite lower rates.
The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.11%, up from 4.08% the previous week.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.07%, down from 4.11% the week prior.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.87%, up from 3.85%.
The average rate for a 15-year FRM was 3.35%, up from 3.30%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.11%, up from 3.07% the previous week.
The ARM share of activity increased to 7.0% of total applications.
Looking at application volume by loan type, applications for mortgages backed by the FHA represented 9.0% of all applications, down from 9.3% the previous week. Applications for Veterans Affairs mortgages represented 9.6% of all loans, up from 9.4% the previous week. Applications for mortgages through the U.S. Department of Agriculture remained unchanged at 0.8% of total applications.