Mortgage application activity fell just 1% for the week ending Feb. 3, compared with the prior week despite an 11 basis point increase in the 30-year fixed rate.

The Refinance Index was essentially unchanged at 1751, versus 1747 previously, as reported by the Mortgage Bankers Association. The Purchase Index slipped 2% to 425. As a percentage of total application activity, refinancings accounted for 42.1%, down from 43%. ARM share was also slightly lower at 29.8% compared to 30.5%.

Mortgage rates were relatively stable last week. According to Freddie Mac's latest survey, the 30-year fixed rate mortgage rate averaged 6.24%, up just one basis point from the previous week's 6.23%. Also, 15-year fixed rates were up only two basis points to 5.83%. The adjustable-rate side saw increases of only one and two basis points as well. The 5/1 hybrid ARM rates came in at 5.89% versus 5.87% previously while one-year ARM rates were 5.34% compared to 5.33%. Expectations are that the higher mortgage rates in the past couple of weeks will slow application activity.

(c) 2006 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.