Real estate purchases pick up

Borrowers hold off on refinancing
Inman News
Overall mortgage applications inched up 0.8 percent last week on a seasonally adjusted basis from the week before, ending a three-week slide, according to the Mortgage Bankers Association's latest survey.

The seasonally adjusted purchase index increased by 4.3 percent to 408.7 from 391.7 the previous week, whereas the refinance index decreased by 4 percent to 1,571.4 from 1,636.7 one week earlier.

The refinance share of mortgage activity decreased to 38.2 percent of total applications from 41.2 percent the previous week. The adjustable-rate-mortgage share of activity decreased to 29.1 percent of total applications from 29.6 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.22 percent from 6.25 percent. Points including the origination fee decreased to 1.23 from 1.34 for 80 percent loan-to-value ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.87 percent from 5.92 percent. Points including the origination fee increased to 1.21 from 1.17 for 80 percent loan-to-value ratio loans.

The average contract interest rate for one-year adjustable-rate mortgages increased to 5.6 percent from 5.52 percent. Points including the origination fee decreased to 0.97 from 0.99 for 80 percent loan-to-value ratio loans.

Washington, D.C.-based Mortgage Bankers Association is a national association representing the real estate finance industry. The survey covers approximately 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.