The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a rise of 6.2% in the group’s seasonally adjusted composite index, compared with last week’s rise of 4.5%. Unadjusted, the composite index rose by 6%.

Applications for refinancing rose by 8% (seasonally adjusted), while seasonally adjusted purchase applications increased by 1% from the previous week. Unadjusted, the purchase index fell by 4% compared with the previous week and rose by 9% compared with the same week a year ago.

The refinancing rate increased to 84% of all applications. About 97% of the applications were seeking fixed-rate loans, the same as last week’s reading.

The average contract interest rate for a conforming 30-year fixed-rate mortgage decreased from 3.52% to 3.47%, the lowest rate ever in the 22-year history of the MBA survey. The rate for a jumbo 30-year fixed-rate mortgage increased, from 3.79% to 3.77%. The average interest rate for a 15-year fixed-rate mortgage decreased from 2.86% to 2.85%, another record low.

The contract interest rate for a 5/1 adjustable rate mortgage increased from 2.62% to 2.63%.

An MBA executive attributed the record low interest rates to “continued uncertainty due to the lack of resolution regarding the fiscal cliff.”

Paul Ausick

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.