Refinancing loses market share as purchasing activity rises

Mortgage loan application volume rose nationwide for the second week in a row, thanks in large part to an increase in purchase applications, according to data from the Mortgage Bankers Association for the week that ended March 5. Purchase applications were up 5.7 percent over the week earlier, while refinancing applications declined by 1.5 percent, bringing overall application volume up by 0.5 percent. Refinancing activity took its lowest share of the market since October 2009, accounting for 67.2 percent of all applications and meanwhile, adjustable rate mortgages accounted for 5.1 percent, their highest share since November 2009. Average interest rates on 30-year fixed-rate mortgages rose to 5.01 percent from 4.95 percent, and on 15-year fixed-rate mortgages, rose to 4.32 percent from 4.27 percent one week ago. TRD