The Mortgage Bankers Association published their weekly report indicating that home loan applications rose from the previous week. MBA reported increases in refinancing and purchases mostly because interest rates remained at 60-year lows. Overall activity increased 4.5% for the week ended Jan. 6, including an adjustment for the New Year’s Day holiday, the Mortgage Bankers Association reported on Wednesday.
The index got a boost from as mortgage refinancing applications rose 3.3%. According to the survey, applications for home purchase loans rose over 8% from a week earlier. The four-week moving average is down just slightly, by 0.53%, while it decreased 1.92% for the purchase index and 0.09% for refinancing.
On fixed 30-year mortgage rates, the average contract interest rate for loans with conforming mortgage balances ($417,500 or less) rose to 4.11% from 4.07%. The rate for 30-year fixed mortgages with jumbo loan balances (greater than $417,500) decreased to 4.34 % from 4.41%.
FHA rates on fixed 30-year mortgages that are government insured remained unchanged, at 3.96%, but the 15-year mortgage rate rose slightly to 3.40% from 3.37%.