The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning. It noted an increase of 9.4% in the group's seasonally adjusted composite index, following a drop of 8.5% for the previous week. Mortgage loan rates fell slightly on all types of loans.
The seasonally adjusted purchase index increased by 9% from the prior week's report, but it is 19% lower year-over-year. On an unadjusted basis, the composite index increased by 11% week-over-week. The unadjusted purchase index increased by 12% for the week.
Adjustable rate mortgage loans account for 8% of all applications, unchanged from a week ago.
The MBA's refinance index increased by 10%, after declining 11% in the previous week. The share of refinancings fell slightly to 57.7% of all applications, the lowest level since last September.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.53% to 4.47%. The rate for a jumbo 30-year fixed-rate mortgage declined from 4.47% to 4.37%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.56% to 3.52%.
The contract interest rate for a 5/1 adjustable rate mortgage loan fell from 3.17% to 3.09%.
The seasonally adjusted purchase index remains close to its lowest point since 1995. That is a very weak showing. Jumbo loan rates also remain lower than conforming loan rates as lenders seek more business from more creditworthy borrowers.