Mortgage applications rallied again for the week ending Jan. 13, rising 23.1 percent from the previous week, according to weekly data from the Mortgage Bankers Assocation released today. That follows a 4.5 percent increase recorded for the week ending Jan. 6.
The surge was powered by a 26.4 percent increase in refinancing applications, which comprised 82.2 percent of all mortgage activity, its highest share since October 2010. (Last week the refinance share of activity was 80.8 percent.) Mortgage applications for home purchases also rose 10.4 percent from the previous week.
The heavy increase in activity can be attributed to falling interest rates, according to Michael Fratantoni, vice president of research and economics at the MBA. “Interest rates dropped last week due to continuing anxieties regarding the fragile economic situation in Europe,” he said.
The average contract rate for a 30-year fixed-rate mortgage with a conforming loan balance ($417,500 or less) fell to 4.06 percent from 4.11 percent. Interest rates also fell for 30-year FHA-backed loans to 3.91 percent from 3.96 percent, and for 15-year fixed-rate loans to 3.33 percent from 3.40 percent. However, rates for 30-year fixed-rate mortgages with jumbo balances rose to 4.40 percent from 4.36 percent. — Adam Fusfeld
