Mortgage applications increased 11.9% from a week ago, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending Jan. 10, 2014.
The previous week’s results included an adjustment for the New Year’s holiday. On an unadjusted basis, the Index increased 61% when compared with the previous week.
The refinance index increased 11% from the prior week. The seasonally adjusted purchase index increased 12% from a week ago, but is at a level similar to what was observed in mid-November 2013.
The unadjusted Purchase Index increased 66% compared with the previous week and was 10% lower than the same week one year ago.
The refinance share of mortgage activity decreased to 62% of total applications from 63% the previous week, which is the lowest share observed since the end of September 2013. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 8% of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.66% from 4.72%, with points increasing to 0.33 from 0.28 (including the origination fee) for 80% loan-to-value ratio loans. The effective rate decreased from last week.