WASHINGTON–Even though interest rates are approaching their highest levels in three years, the volume of mortgage applications rose last week, according to the Mortgage Bankers Association’s Market Composite Index.
The MBA said that the Index, when viewed on a seasonally adjusted basis, was up 3.1% during the week ended March 10. The index rose 4.0% compared to the previous week when unadjusted, the MBA said.
According to the Mortgage Bankers Association, applications for both refinancing and purchasing contributed to the increase. The Refinance Index was up 4.0% from the week ended March 3. The seasonally adjusted Purchase Index gained 2.0% while the unadjusted Purchase Index increased 3%. The unadjusted Purchase Index was 6% higher than the same week in 2015, the MBA said.
The MBA also reported:
- Jumbo 30-year FRM, loans with balances greater than $424,100, had the highest average rate since April 2014 as well, rising to 4.44% from 4.27%. Points increased to 0.28 from 0.25.
- The contract rate for 30-year FRM backed by the FHA averaged 4.29% with 039 point. The previous week the rate was 4.18% with 0.32 point. The contract rate was at its highest level since January 2014.
- The average contract interest rate for the 15-year FRM was 3.66%, up 9 basis points week-over-week. Points increased to 0.45 from 0.36.
- The average contract interest rate for 5/1 ARMs decreased to 3.45% from 3.48%, with points increasing to 0.24 from 0.20. The effective rate decreased.