MBA reports spike in refinancing applications

More Americans applied for mortgages last week, with application volume increasing 14.3 percent for the week that ended Jan. 8 on a seasonally-adjusted, week-over-week basis, according to the Mortgage Bankers Association. Refinancing applications drove the spike in activity, increasing 21.8 percent from the week earlier. Refinancings accounted for 71.5 percent of all mortgage activity, up from 68.2 percent week ago. Meanwhile, purchasing applications saw only a slight increase of 0.8 percent. Average contract interest rates for 30-year fixed-rate mortgages decreased this week to 5.13 percent from 5.18 a week earlier. For 15-year fixed-rate mortgages, rates decreased by 0.17 percent to 4.45 percent this week. TRD