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Refinancing Still Driving Mortgage Applications

Refinancing continued to buoy up mortgage application volume during the week ended January 22 as interest rates fell back to levels last seen in the mid-fall of 2015.  Purchase mortgage applications also increased even as an epic blizzard descended on the South and Northeast.

The Mortgage Bankers Association (MBA) reported this week that its Market Composite Index, a measure of loan application volume, increased 8.8 percent on a seasonally adjusted basis compared to the week ended January 15.  The results include an adjustment to account for the Martin Luther King holiday which shortened the work week although not universally. On an unadjusted basis the index was up 0.3 percent.

The Refinance Index gained 11 percent from the previous week and the refinance share of mortgage activity dipped to 59.0 percent of all mortgage applications from 59.1 percent the previous week.

The seasonally adjusted Purchase Index was up 5 percent from the previous week. The unadjusted Purchase Index increased 0.4 percent week-over-week and was 22 percent higher than during the same week in 2015.

Refinance Index vs 30 Yr Fixed

Refinance Index30 Yr. Fixed201220132014201520163.544.5530 Yr. Fixed

Purchase Index vs 30 Yr Fixed

 

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