Mortgage application activity rose 12.6% in the week ending Nov. 9 said the Mortgage Bankers Association (MBA).
The increase resulted from a rebound in applications from those states impacted by the Superstorm Sandy as well as based on new historical lows in 30-year fixed mortgage rates.
“Following the decrease in applications two weeks ago due to the effects of superstorm Sandy, mortgage applications in many East Coast states rebounded strongly this week,” said Micheal Fratantoni, MBA’s vice president of research and economics. “Application volume in New Jersey more than doubled over the week, while volume in Connecticut and New York increased more than 60 percent.”
After declining for five straight weeks following its 3-1/2 year high at the end of September, the Refinance Index jumped 13.1% to 4801.3, while the Purchase Index increased 11% to 198.6. Both indexes are at their highest level since mid-October.
As noted above, the contract interest rate for 30-year fixed-rate mortgage rates declined to a new average low of 3.52 percent from 3.61 percent in the prior week.
Federal Housing Administration rates were also lower by three basis points to 3.34 percent.