Mortgage application volume started the year on the upswing because of higher refinance activity, even with a slight increase in rates.
The Mortgage Bankers Association's Weekly Mortgage Applications Survey was up 8.3% for the week ending Jan. 5. The refinance index increased 11%
The refinance application share increased to 52.9% from 52.1% the previous week.
The seasonally adjusted purchase index increased 5% from one week earlier. The unadjusted purchase index increased 44% compared with the previous week and was 1% lower than the same week one year ago.
Adjustable-rate loan application activity decreased to 5% from 5.3% of total applications, while the share of Federal Housing Administration-guaranteed loans increased to 11.1% from 10.8% the week prior.
The share of applications for Veterans Affairs-guaranteed loans remained unchanged at 11.4% and the U.S. Department of Agriculture/Rural Development share decreased to 0.7% from 0.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased 1 basis point to 4.23%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100), the average contract rate increased 2 basis points to 4.16%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased 1 basis point to 4.16%, while for 15-year fixed-rate mortgages the average increased 2 basis points to 3.66%. The average contract interest rate for 5/1 ARMs decreased 3 basis points to 3.5%.