After declining for six weeks straight, mortgage application volume increased 1% during the week ending Dec. 6, compared to the previous week, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
The previous week's results included an adjustment for the Thanksgiving holiday. On an unadjusted basis, volume was up 43% compared with the previous week.
Refinancing volume also inched up, increasing 2% compared to the previous week. Still, refinancing volume, which has been falling for the past six months, was down 16% compared to the week prior to Thanksgiving. The refinance share of mortgage activity increased to 65% of total applications, up from 63% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 8.1% of total applications and is at its highest level since July 2008, MBA reports.
The seasonally adjusted Purchase Index, which forecasts incoming application volume, increased 1% compared to the previous week, but was down 3% compared to the week prior to Thanksgiving. On an unadjusted basis, the Purchase Index increased 37% compared with the previous week and was 10% lower than the same week one year ago.
Interest rates on 30-year loans, however, continue to rise, last week reaching their highest level, on average, since September. The average rate for a 30-year fixed-rate mortgage with conforming loan balance ($417,000 or less) increased to 4.61%, up from 4.51% the week prior.
The average rate for a 30-year fixed-rate mortgage with jumbo loan balance (greater than $417,000) increased to 4.59%, up from 4.49%.
The average rate for a 30-year, fixed-rate mortgage backed by the Federal Housing Administration increased to 4.30%, up from 4.17% the week prior.
The average rate for a 15-year fixed-rate mortgage increased to 3.66%, up from 3.56% the week prior.
The average rate for a 5/1 adjustable rate mortgage increased to 3.11% from 3.09%.
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