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.
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