NEW YORK – Mortgage applications rose 2.7% on a seasonally adjusted basis and 2.3% unadjusted, in the week ending August 27, the Mortgage Bankers Association said Wednesday, as refinancings were up 2.8%.
The seasonally adjusted purchase index rose 1.8% while the unadjusted purchase index fell 0.4% in the week and declined 37.0% year-over-year.
"Refinancing activity picked up again last week, reaching new 15-month highs, as borrowers took advantage of even lower mortgage rates. The drop in mortgage rates was in line with Treasury rates as the latest data continue to show weak economic growth and an exceptionally weak housing market," said Michael Fratantoni, MBA's Vice President of Research and Economics. "The sharp decline in MBA's Purchase Application index in May had provided a clear leading indicator of the drops in new and existing home sales that were reported for June and July. Despite the slight increase in purchase activity in the past week, the continued low level of purchase applications indicates we are unlikely to see an increase in new home sales reported for August or existing home sales reported for September."
The four week moving average for the seasonally adjusted market index rose 5.2%, while the four-week average for the seasonally adjusted purchase index slid 0.2%, and the refinance index increased 6.3%.
Refinancings accounted for 82.9% of total applications, up from 82.4% the previous week, the highest share since January 2009, while adjustable-rate mortgages (ARM) were 6.1% of applications, more than the 5.8% a week earlier.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.43% from 4.55%, while 15-year fixed-rates dropped to 3.88% from 3.91%, and one-year ARMs increased to 6.95% from 6.84%.
