Refinancing Applications at 15-Month High

Mortgage application refinance activity reached its highest level in 15 months the week ending Aug. 13, according to the Mortgage Bankers Association’s weekly Mortgage Application Survey. The MBA credited interest rates remaining near historic lows for the increased activity.

The Refinance Index rose 17.1 percent from the previous week. Refinancing made up 81.4 percent of applications, up from 78.1 percent the previous week, while adjustable-rate loan activity fell 0.2 percent to 5.7 percent. The four-week moving average for the Refinance Index increased 3.2 percent on a seasonally adjusted basis.

The survey, released Aug. 18, showed that the Market Composite Index, which measures mortgage loan application activity, increased 13 percent on a seasonally adjusted basis from the previous week and 12.4 percent on an unadjusted basis. The four-week moving average for the Market Index increased 2.6 percent on a seasonally adjusted basis.

The MBA’s Purchase Index dropped 3.4 percent from the previous week on a seasonally adjusted basis. On a non-adjusted basis, the index fell 4.6 percent from the previous week, down 38.6 percent from a year ago. The four-week moving average for the Purchase Index inched up 0.1 percent on a seasonally adjusted basis.

The average rate on a 30-year fixed loan increased to 4.6 percent from the prior week’s 4.57 percent, while points, including origination fees, increased from 0.89 to 0.92 for 80 percent loan-to-value ratio loans, the MBA reported. The average rate on a 15-year fixed loan rose from 3.95 percent to 3.99 percent, while points, including origination fees, fell from 1.08 to 1.05. The average rate on a one-year adjustable rate mortgage decreased from 7 percent to 6.9 percent, while points, including origination fees, inched down from 0.22 to 0.21.