Mortgage application volume increased 2.6% during the week ending Jan. 3, 2014, compared to the week prior, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
The increase includes an adjustment to account for the New Year's Day holiday, while the previous week's results were adjusted for the Christmas holiday.
On an unadjusted basis, volume increased 45% compared with the previous week.
The seasonally adjusted Purchase Index, which forecasts incoming volume, decreased 1% compared to the previous week. On an unadjusted basis, the Purchase Index increased 42% compared with the previous week and was 20% lower compared to the same week one year ago.
Refinancing volume dipped 5% compared to the previous week. Refinancing volume fell 9% the week prior. Refinances accounted for 63% of total applications, unchanged from the previous week.
The adjustable-rate mortgage (ARM) share of activity also remained unchanged at 8% of total applications.
Interest rates increased slightly or were unchanged from the previous week. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) remained 4.72% – while the average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) remained 4.66%.
The average rate for a 30-year FRM backed by the Federal Housing Administration increased to 4.36% from 4.35%.
The average rate for a 15-year FRM increased to 3.77% from 3.73% – while the average rate for a 5/1 ARM increased to 3.33% from 3.31%.