The number of mortgage applications filed for the week ending Nov. 9 shot up 12.6% as Northeast consumers returned in the wake of Hurricane Sandy, according to the Mortgage Bankers Association.
The refinance index alone grew 13% from the previous week while home purchases rose 11%.
"Following the decrease in applications two weeks ago due to the effects of superstorm Sandy, mortgage applications in many East Coast states rebounded strongly this week," said Mike Fratantoni, MBA’s vice president of research and economics.
"Application volume in New Jersey more than doubled over the week, while volume in Connecticut and New York increased more than 60%. In addition to the rebound in the states impacted by the storm, the 30-year fixed mortgage rate reached a new record low in the survey."
The average interest rate for a 30-year, fixed-rate mortgage with a conforming loan balance declined to a low point of 3.52% from 3.61% a week earlier. The 30-year, FRM jumbo declined to 3.83% for the same week. In addition, the 30-year FRM backed by the Federal Housing Administration declined to 3.34% from 3.37%
The average 15-year, FRM fell to 2.88% from 2.95%, and the 5/1 ARM edged down to 2.60% from 2.61% last week.