Apparently, the turmoil in the global markets isn’t deterring consumers who are interested in buying homes from filling out mortgage applications.
According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey, mortgage application volume increased 9.0% on an adjusted basis during the week ended Jan. 15 compared with one week earlier.
On an unadjusted basis, application volume increased 12% compared with the previous week. Applications for refinances increased 19% compared with the previous week; however, applications for purchases decreased 2%.
On an unadjusted basis, applications for purchases increased 4% compared with the previous week and increased 17% compared with the same week a year earlier.
The refinance share of mortgage activity increased to 59.1% of total applications from 55.8% the previous week.
Helping to boost application volume was the fact that mortgage rates dipped even lower, partly as a result of the economic turmoil. During the week ended Jan. 15, the average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.06%, down considerably from 4.12% the previous week.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 3.93%, down from 4.02%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.86%, down from 3.90%.
The average rate for a 15-year FRM was 3.29%, down from 3.42%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.20%, up from 3.14%.
The ARM share of activity increased to 6.0% of total applications.
Looking at application volume by loan type, the FHA share of total applications was 13.7%, down from 14.4% the week prior. The Veterans Affairs share of total applications was 10.8%, down from 12.2% the week prior. The U.S. Department of Agriculture share of applications was about 0.7%, down from 0.8%.