Mortgage applications increased 23.1% from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending Jan. 13. The data includes an adjustment for New Year's Day.
The MBA market composite index increased 23.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased 38.1% compared with the previous week.Â
The MBA refinance index increased 26.4% from the previous week to its highest level since Aug. 8, 2011. The seasonally adjusted purchase index increased 10.3% from one week earlier, to its highest level since Dec. 12, 2011. The unadjusted purchase index increased 28.4% compared with the previous week and was 2.2% higher than the same week one year ago.
The refinance share of mortgage activity increased to 82.2% of total applications from 80.8% the previous week. This is the highest refinance share since Oct. 22, 2010. The adjustable-rate mortgage share of activity increased to 5.6% from 5.4% of total applications from the previous week.
‘Interest rates dropped last week due to continuing anxieties regarding the fragile economic situation in Europe,’ says Michael Fratantoni, vice president of research and economics at the MBA. ‘With mortgage rates reaching new lows, refinance volume jumped and MBA's refinance index reached its highest level in the last six months.Â Purchase activity also increased as buyers returned to the market after the holiday season.’