Mortgage Apps Climb For The Week

Mortgage applications increased 0.5% from one week earlier, according to data from the Weekly Mortgage Applications Survey (Mortgage Bankers Association)

– The Refinance Index increased 0.1% from the previous week and was up 7.0% compared to the same week one year ago

– The Purchase Index increased 2.0% compared with the previous week and the unadjusted index was only 1.0% higher than the same week one year ago.

MBA’s data shows that mortgage rates are continuing to climb.  The average contract interest rate for 30-year fixed-rate mortgages increased to 3.23% from 3.08%, with points increasing to 0.48 from 0.46.

Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said in a statement, “Mortgage rates jumped last week on market expectations of stronger economic growth and higher inflation.”  However, Kan added, “The housing market is entering the busy spring buying season with strong demand. Purchase applications increased, with a rise in government applications – likely first-time buyers – pulling down the average loan size for the first time in six weeks.”