Despite an uptick in borrowing costs applications to purchase a home increased last week. The Mortgage Bankers Association's Market Composite Index reports that overall application volume saw a four percent climb for the week ended January 20 when seasonally adjusted. This latest data includes an adjustment for the Martin Luther King, Jr. Holiday.
Purchase applications increased six percent on a week-to-week basis bringing the index to its highest level since June. Refinances were also higher compared to the pervious week, albeit by a smaller margin. The Refinance Index posted a 0.2 percent gain and accounted for 50 percent of all mortgage activity for the period.
Mortgage rates experienced a slight escalation during the week and are expected to climb further which may drive more homeowners to refinance into current rates before they do. For now, conventional conforming no-point 30-year fixed rates are averaging 4.25 percent while the 15-year rates are near 3.375 percent.cent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.