Mortgage applications soared 12.6% in the week ended Nov. 9, as refinances grew 13% and purchases rose 11%, according to data from the Mortgage Bankers Association's weekly mortgage applications survey.
"Following the decrease in applications two weeks ago due to the effects of superstorm Sandy, mortgage applications in many East Coast states rebounded strongly this week," said Mike Fratantoni, MBA's Vice President of Research and Economics. "Application volume in New Jersey more than doubled over the week, while volume in Connecticut and New York increased more than 60 percent. In addition to the rebound in the states impacted by the storm, the 30 year fixed mortgage rate reached a new record low in the survey."
Refinances rose to 81% of the market from 80%, while adjustable-rate mortgages were flat at 4% of the market.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) slipped to 3.52% from 3.61%.
The average contract interest rate for 15-year fixed-rate mortgages fell to 2.88% from 2.95%.