Mortgage applications reversed a three-week decline to climb 9.4% from one week earlier, according to the Mortgage Bankers Association’s survey for the week ending February 28, 2014.
Last week mortgage apps hit a two-decade low.
The refinance index increased 10% from the previous week. Despite the increase observed this week, the refinance index is still 3% lower than it was two weeks ago.
The refinance share of mortgage activity decreased to 57.7% of total applications from 58% the previous week and is at its lowest level since early September of 2013.
The seasonally adjusted purchase index increased 9% from one week earlier.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.47% from 4.53%, with points decreasing to 0.28 from 0.31 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.37% from 4.47%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.13% from 4.17%.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.52% from 3.56%.