Mortgage application volume increased slightly during the week ending Jan. 31, driven mainly by a dip in mortgage interest rates, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
Specifically, application volume increased 0.4%, on a seasonally adjusted basis, compared to one week earlier. On an unadjusted basis, volume increased 14% compared with the previous week, which included the Martin Luther King Jr. holiday.
Refinancing volume also increased, rising 3% compared to the previous week. The refinance share of mortgage activity remained unchanged at 62% of total applications.
The seasonally adjusted Purchase Index, serving as a forecast of incoming volume, decreased 4% from one week earlier. On an unadjusted basis it increased 14%, compared with the previous week, and was 17% lower than the same week one year ago.â�¨
The adjustable-rate mortgage (ARM) share of activity, which has been on the rise in recent weeks as ARMs become more attractive to certain homebuyers, increased to 8% of total applications, according to the report.
The average rate for a 30-year fixed-rate mortgage with conforming loan balance ($417,000 or less) was 4.47%, down from 4.52% the previous week.
The average rate for a 30-year fixed-rate mortgage with jumbo loan balance (greater than $417,000) was 4.42%, down from 4.47% the previous week.
The average rate for a 30-year fixed-rate mortgage backed by the Federal Housing Administration decreased to 4.12% from 4.18%.
The average rate for a 15-year fixed-rate mortgage decreased to 3.53%, down from 3.59% the week prior.
The average contract interest rate for a 5/1 ARM decreased to 3.15% from 3.25%.
This was one of the first weeks in quite some time that the average rate declined for all loan products in the survey.Â Contract rates were at their lowest level since November, except for the 5/1 ARM, which was at the lowest level since December, MBA notes.