Mortgage applications filed in the United States shot up 4.1% last week as refinancing volumes surged on record low interest rates for the year.
The Mortgage Bankers Association released its Market Composite Index – a matrix that measures loan application volume – Wednesday morning, showing an uptick in refinancing activity. The index rose 4.1% on a seasonally adjusted rate from a week earlier.
In addition, the refinance index, which measures refinancing applications, shot up 9.3%, while the purchase index declined 8.2% from a week ago.
The refinancing share of mortgage activity grew to 79.7% of total applications, up from 76% the previous week.
The average interest rate for the 30-year, fixed-rate mortgage with conforming loan limits of $417,500 or less declined to 4.12%, its lowest rate this year. The 30-year, jumbo fixed-rate mortgage also reached a new low for the year, falling 4.47% from 4.52% a week earlier. The interest rates on 30-year, FRM backed by the FHA declined to 3.94% compared to 3.98%.
In addition, the average interest rate for the 15-year, FRM declined to 3.44% from 3.53%.
In November, purchase applications declined in every loan category, except for the high-end market where homes valued at $729,000 or more saw a 1.9% increase in applications.
In addition, the 5/1 ARM rate fell from 3.01% to 2.93%.
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