Mortgage application volume increased for the week ending August 14, according to a report released Wednesday by the Mortgage Bankers Association (MBA).

The Market Composite Index, a measure of mortgage loan application volume, increased 5.6% on a seasonally-adjusted basis from the previous week. On an unadjusted basis, the Index increased 4.8% from the previous week, and increased 25% compared to the same week a year ago.

The Refinance Index increased 6.9%, after a 7.2% decrease in the week prior. The seasonally-adjusted Purchase Index increased 3.9% for the third consecutive weekly gain. The four-week moving average for all mortgages was down 0.1% on a seasonally adjusted basis.

The Refinance Index has seen ups and downs over the past month due to fluctuations in mortgage interest rates. The Purchase Index has not been affected so much by mortgage interest rates and has steadily trended upward over the past few weeks, a sign that home buyers are taking advantage of low interest rates and the first-time home-buyer program.

Refinance activity has made up 53.3% of total mortgage applications, up 1% from the previous week. Adjustable-rate mortgages accounted for 6.5% of mortgage activity, up from 5.8% in the previous week.

Mortgage interest rates dipped lower for the week ending August 14. The average contract interest rate for a 30-year fixed rate mortgage with an 80% loan-to-value ratio decreased to 5.15% from 5.38%. decreasing. The average 15-year fixed rate mortgage decreased to 4.52% from 4.71%. And one-year adjustable rate mortgages (ARMs) decreased to 6.66% from 6.71%.

Points must be paid to obtain those rates. The average points required for 30-year fixed rate mortgages decreased to .98 from 1.18. The average points required for 15-year fixed rate mortgages decreased to .93 from 1.2. The average points required for one-year ARMs decreased to .07 from .08. One point is equal to 1% of the amount of the loan, charged as prepaid interest.


Source:
Mortgage Bankers Association