Mortgage application volume jumped 9.3% on an adjusted basis during the week ended Feb. 5, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
Applications for refinances increased 16%, while applications for purchases increased 0.2%.
On an unadjusted basis, volume increased 12% compared with the previous week. Also on an unadjusted basis, applications for purchases increased 7% compared with the previous week and increased 25% compared with the same week a year earlier.
Due to mortgage rates dropping lower still, the refinance share of mortgage activity increased to 61.2% of total applications from 59.2% the previous week.
The average rate for a 30-year fixed-rate mortgage (FRM) was 3.91%, down from 3.97% The average rate for a 30-year jumbo FRM was 3.76%, down from 3.84 percent, according to the MBA’s data.
All rates are based on closings.
The average contract interest rate for 30-year FRM backed by the Federal Housing Administration (FHA) was 3.72%, down from 3.80%.
The average rate for a 15-year FRM was 3.18%, down from 3.22%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.96%, down from 3.00%.
The ARM share of activity increased to 6.4% of total applications.
Looking at application volume by loan type, about 12.3% of applications were for mortgages backed by the FHA – down from 12.9% the week prior. The Veterans Affairs share of total applications remained unchanged at 11.1%, and the U.S. Department of Agriculture share of total applications was 0.6%, down from 0.7% the week prior.