Mortgage applications virtually stalled last week, but are still stronger than the previous year.
In their latest survey, The Mortgage Bankers Association (MBA) reports that applications increased just 0.1 percent week over week, but jumped 18 percent as compared to to the same week of 2014. Purchasing applications stumbled, falling 4 percent from the previous week. Despite the fall, last week's result was still 20 percent higher than last year. In terms of total volume, purchasing applications accounted for 46.9 percent of all the applications sent over the course of the week.
Applications to refinance were the driving force in the increase, rising 3.1 percent to its highest level since May. These applications were the majority of those filed, accounting for 53.1 percent of the total share, the highest portion since April. MBA vice president of research and economics Lynn Fisher explained the shift in a statement.
"As rates declined over the past few weeks, refinance activity picked up in terms of share and volume in the most recent week's data," she said.
Average rates for the 30 year fixed rate mortgage stayed remained the same at 4.13 percent, according to the MBA. Jumbo mortgages, those over $417,000, also remained the same at 4.08 percent. Rates for federally backed 30 year fixed rates mortgages dipped slightly, moving from 3.96 percent to 3.94 percent.
Interest rates for the 15 year fixed rate mortgage moved from 3.36 percent to 3.39 percent. Rates for the 5/1 adjustable rate mortgage also increased, rising to 3.11 percent from 3.02 percent. Adjustable rate mortgages accounted for 6.8 percent of the total number of applications filed.
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