Home purchases return to 2010 levels
The number of Americans filing home purchase and refinance applications grew for the week ending Jan. 18, pushing all mortgage application activity up 7% from the previous week.
The Mortgage Bankers Association noted its home purchase index grew 3% from the prior period, reaching its highest level since May of 2010 when the market was still feeling the effects of the popular homebuyer tax credit.
"This increase in purchase applications was primarily for conventional loans, as the seasonally adjusted Conventional Purchase Index was at its highest level since October of 2009," the MBA wrote. "The unadjusted Purchase Index increased 9% compared with the previous week and was 26% higher than the same week one year ago."
The refinance index also shot up 8% last week as fixed mortgage rates rose.
The average 30-year, fixed-rate mortgage with a conforming loan balance increased to 3.62% from 3.61%, while the 30-year, FRM for jumbos declined to 3.85% from 3.88%.
The 30-year, FRM backed by FHA edged up to 3.40% from 3.39%, and the 15-year, FRM slipped to 2.87% from 2.88%.
In addition, the 5/1 ARM fell to 2.61% from 2.66%.