Falling interest rates boost real estate purchases

Refi activity at highest level since March

Overall mortgage applications increased last week, going up 5.9 percent on a seasonally adjusted basis from the week before, according to the Mortgage Bankers Association's weekly survey.

The MBA seasonally adjusted purchase index increased by 3.3 percent to 482 from 466.7 percent the previous week. The seasonally adjusted refinance index increased by 9.8 percent to 2,052.5 from 1,870 one week earlier.

The refinance share of mortgage activity increased to 39.3 percent of total applications, from 38 percent the previous week. The adjustable-rate-mortgage share of activity decreased to 34.7 percent of total applications, from 35.4 percent the previous week.

"With a 9.8 percent increase in applications, refinance activity is at its highest level since March 11," said Michael Cevarr, director of member surveys at MBA, in a statement. "However, refinance applications volume is down 14.6 percent from one year ago."

The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.75 percent from 5.83 percent one week earlier. Points including the origination fee remained at 1.28 for 80 percent loan-to-value loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.33 percent from 5.4 percent one week earlier. Points including the origination fee increased to 1.26 from 1.2 for 80 percent loan-to-value loans.

The average contract interest rate for one-year adjustable-rate mortgages decreased to 4.15 percent from 4.22 percent one week earlier. Points including the origination fee decreased to 0.97 from 1.01 for 80 percent loan-to-value loans.

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