Refis lead uptick in U.S. mortgage activity

Mortgage application volume climbed 5 percent on a seasonally adjusted basis nationwide during the week ending Jan. 14, compared to the week earlier, according to the Mortgage Banker Association weekly applications survey. The uptick in mortgage activity was led by refinancing, which saw a 7.7 percent increase during the same time period. New mortgage purchases declined slightly, dipping 1.9 percent that week. The average 30-year mortgage interest rate stayed relatively flat, dipping to 4.77 percent, from 4.78 percent the previous week. Michael Fratantoni, vice president of research and economics for the MBA, noted that relatively low mortgage rates were likely spurring the refi activity. “Mortgage rates have moved somewhat lower since the beginning of the year, as mixed data on the job market continue to cloud the outlook for the economy,” Fratantoni said. “Refinance applications have picked up, as borrowers take advantage of lower rates.” TRD