Mortgage applications increased 7.5% in the week ended Feb. 3 as refinancings rose, thanks to declining mortgage interest rates, data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey indicated.
The refinance index grew 9.4%, while the purchase index inched up 0.1%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 4.05%, the lowest rate in the history of the survey, from 4.09%.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.33%, the lowest rate in the history of the survey, from 3.36%.
The refinance share of mortgage activity increased to 80.5% of total applications from 80.0% the previous week. The adjustable-rate mortgage share of activity increased to 6.0% from 5.6% of applications from the previous week.
