MBA: Mortgage Apps At Highest Since May As Rates Fall

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Mortgage application volume rose to its highest level in four months last week, as interest rates continued to fall toward near-record lows.

In a report released Wednesday, the Mortgage Bankers Association reported that its market composite index, which measures mortgage loan application volume, rose 16.4 percent - reaching its highest level since mid-May - on a seasonally adjusted basis.

Unadjusted, the index also increased 16.4 percent from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages also fell to its lowest level since mid-May, decreasing from 4.94 percent to 4.89 percent. The rate continues to inch closer to the all-time low rate of 4.61 percent, and has remained under five percent for the third consecutive week.

Data on interest rates for 15-year fixed-rate and one year adjustable rate mortgages was mixed, as the rate for 15-year mortgages fell to 4.32 percent from 4.34 percent, and the one-year ARM rate rose to 6.56 percent from 6.40 percent.

The refinance index hit its highest level since May, increasing 18.2 percent from the previous week. The seasonally adjusted purchase index hit its highest level since January, increasing 13.2 percent, and the seasonally adjusted government purchase index increased to a record high, rising 14.4 percent.

Refinance shares of mortgage activity also increased last week, moving up to 66.3 percent of total applications from 65.3 percent the week before, while the ARM share of activity decreased to 6.1 percent of applications from 6.2 the previous week.

The four week moving average for the seasonally adjusted market index also rose, increasing 4.2 percent. The same average for the seasonally adjusted purchase index is up 0.2 percent, and also up 6.7 percent for the refinance index.

Mortgage application volume rose to its highest level in four months last week, as interest rates continued to fall toward near-record lows. In a report released Wednesday, the Mortgage Bankers Association reported that its market composite index, which measures mortgage loan application volume, rose 16.4 percent - its highest level since mid-May - on a seasonally adjusted basis. (Market News Provided by RTTNews)