After diving 7.2% the previous week, due to the Labor Day holiday weekend, mortgage application volume jumped back up 7.9% during the week ending Sept. 12, more than recovering the ground lost, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, application volume increased 19% compared with the previous week.
Applications for refinances were up 10%, on an adjusted basis, while applications for purchases were up 5%.
On an unadjusted basis, applications for purchases increased 14% compared with the previous week and were up 10% compared with the same week one year ago.
‘Application volume rebounded coming out of the Labor Day holiday, even as rates increased to their highest level in the last few months,’ says Mike Fratantoni, chief economist for the MBA. ‘Given the volatility in activity around the long weekend, it can be helpful to look at the change over a two week span: Refinance applications are down 1.4 percent, while purchase applications are up 2.1 percent. Purchase volume continues to track almost 10 percent behind last year's levels.’
The refinance share of mortgage activity increased to 57% of total applications, up from 55% the previous week.
The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.36%, up from 4.27% the week prior.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.24%, up from 4.15% the previous week.
The average rate for a 30-year FRM backed by the Federal Housing Administration was 4.03%, up from 3.97%.
The average rate for a 15-year FRM was 3.56%, up from 3.44%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.19%, up from 3.12%.
The ARM share of activity increased to 7.6% of total applications.