Mortgage loan applications bounced back last week as rates fell and end-of-the-year holiday hoopla faded.
The Mortgage Bankers Association weekly index of application volume rose to 1,324.8, an increase of 15.8 percent on a seasonally adjusted basis from 1,143.8 the previous week.
On an unadjusted basis, the index rose 95.7 percent compared to the previous week and was up 52.4 percent compared with the same week a year ago.
Refinances continued to dominate the applications with 85.3 percent of the loans being refinances, up from 79.8 percent the previous week.
Lenders have nearly stopped offering adjustable rate mortgages with the ARM share representing 1.1 percent compared to 0.9 percent the previous week.
Interest rates continued to decrease:
- 30-year fixed-rate mortgages decreased to 4.89 percent from 5.07 percent;
- 15-year fixed-rate mortgages decreased to 4.63 percent from 4.67 percent
- 1-year ARMs decreased to 5.89 percent from 5.90 percent.