HousingWire reports mortgage applications spiked 10.3 percent last week on a seasonally-adjusted basis, according to the Mortgage Bankers Association (MBA) market composite index. On an unadjusted basis the index increase amounted to 9.9 percent. Mortgage refinance applications accounted for 78.6 percent of all applications, an increase from 77.1 percent last week. Mike Fratantoni, MBA’s vice president of research and economics, says “Treasury rates dropped last week, as renewed turmoil in Europe once again led to a flight to quality, and 30-year mortgage rates dropped to their second lowest level of the year. Refinance applications jumped more than 12 percent to their highest level in a month and some lenders experienced even larger increases. As has been the case all year, many refinance applicants are opting to deleverage by choosing 15-year mortgages.” The 30-year fixed rate mortgage (FRM) average interest rate with conforming loan limits of $417,500 or less fell to 4.22 percent from 4.31 percent a week earlier. The FHA 30-year mortgage rate fell to $4.02 percent from 4.09 percent last week. FRM for the jumbo balance mortgage of $417,500 or more dropped from 4.69 percent to 4.57 percent.
(Graphic credit: Wikipedia)