Another steep rise in refinance pushed mortgage applications up 8.2% from one week earlier for the week ending Feb. 12, according to latest report from the Mortgage Bankers Association.
The refinance share of mortgage activity soared to its highest level since February 2015, making up 64.3% of total applications, up from 61.2% the previous week.
On the other side, the adjustable-rate mortgage share of activity increased to 6.7% of total applications.
The refinance index, conventional refinance index and government refinance index increased 16% from the previous week, reaching their highest levels since January 2015, while the seasonally adjusted purchase index decreased 4% from one week earlier.
The Federal Housing Administration’s share of total applications fell to 11.5% from 12.3% the week prior. The Veteran Affairs’ share of total applications increased to 11.7% compared to 11.1% the week prior. The United States Department of Agriculture’s share of total applications remained unchanged from 0.6% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) sank to its lowest level since April 2015, coming in at 3.83%, from 3.91%.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased from 3.76% to 3.74%, its lowest level since December 2012.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to its lowest level since April 2015, 3.67%, from 3.72%.
The average contract interest rate for 15-year fixed-rate mortgages decreased to its lowest level since April 2015, 3.11%, from 3.18%, while the average contract interest rate for 5/1 ARMs decreased to its lowest level since May 2015, 2.92%, from 2.96%.
