After increasing 9.3% the previous week, mortgage application volume increased 8.2% on an adjusted basis during the week ended Feb. 12, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
The increase was driven by a jump in applications for refinances that was spurred by lower interest rates. Applications for refinances increased about 16% on an adjusted basis compared with the previous week, while applications for purchases decreased 4%.
On an unadjusted basis, application volume increased 10% compared with the previous week. Applications for purchases increased 2% on an unadjusted basis compared with the previous week and were 30% higher compared with the same week a year earlier.
The refinance share of mortgage activity increased 64.3% of total applications – up from 61.2% the previous week.
The average rate for a 30-year, fixed-rate mortgage (FRM) with conforming loan balance was 3.83%, down from 3.91%.
The average rate for 30-year jumbo FRM was 3.74%, down from 3.76%.
The average rate for 30-year FRM backed by the Federal Housing Administration (FHA) was 3.67%, down from 3.72%.
The average rate for 15-year FRM was 3.11%, down from 3.18%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.92%, down from 2.96%.
The ARM share of activity increased to 6.7% of total applications.
Looking at application volume by loan type, about 11.5% of all applications were for loans backed by the FHA – down from 12.3% the previous week. About 11.7% of applications were for Veterans Affairs loans – up from 11.1% the week prior. The United States Department of Agriculture share of total applications remained unchanged at 0.6%.