There are signs of new life in the housing market, as mortgage application volume increased 4.3% for the week ending April 11, on an adjusted basis, compared to the week prior, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, application volume was up 5% compared with the previous week.
Refinance application volume was up 7% while purchase application volume was up about 1% compared to the previous week. The refinance share of mortgage activity increased to 52% of total applications from 51% the previous week.
On an unadjusted basis, purchase volume was up 2% – but was 16% lower compared to the same week one year ago.
Decreasing interest rates may have been the driver of increased refinance activity, as rates dipped slightly last week. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.47%, down from 4.56% the week prior.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.39%, down from 4.49% the week prior.
The average rate for a 30-year FRM backed by the Federal Housing Administration was 4.14%, down from 4.19% the week prior.
The average rate for a 15-year FRM was 3.54%, down from 3.62%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.15%, down from 3.26%. The ARM share of activity remained unchanged at 8% of total applications.