Mortgage application volume increased 3.6% on an adjusted basis during the week ended Feb. 15, as fixed mortgage rates remained near their 10-month low, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances increased 6% compared with the previous week while applications for purchases increased 2%.
On an unadjusted basis, total volume increased 7% compared with the previous week. Applications for purchases increased 7% on an unadjusted basis and were 3% higher compared with the same week one year earlier.
“Mortgage rates held steady on mixed economic news, as core inflation remained firm, while retail sales in December were much weaker than expected,” says Joel Kan, associate vice president of industry surveys and forecasts for the MBA, in a statement. “However, overall application activity picked up over the week.”
“After four consecutive declines, purchase applications increased almost two percent over the week and 2.5 percent compared to a year ago – showing some promise as we edge closer to the spring home buying season,” Kan adds.
The refinance share of mortgage activity decreased to 41.7% of total applications, down slightly from 41.8% the previous week.
The adjustable-rate mortgage (ARM) share of activity remained unchanged at 7.7%.
The average rate for a 30-year fixed-rate mortgage, based on closings, was 4.66%, up slightly from 4.65%.
The average rate for a 5/1 ARM was 4.00%, up from 3.97%.