Purchase Applications Surged Despite the Holiday and Increasing Mortgage Interest Rates

Adjusting for the Veterans Day holiday, mortgage application activity made gains for the week ending November 13, 2015. According to the Mortgage Bankers Association’s (MBA) latest weekly survey, mortgage applications rose by 6.2% compared to the previous week. Although the Refinance Index only rose by 2%, the Purchase Index surged by 12% and was “19 percent higher than the same week one year ago.”

The majority of the mortgage interest rates tracked in the survey inched higher. Reaching a new peak since July 2015, the average 30-year fixed-rate mortgage (FRM) interest rate for conforming loans climbed to 4.18% from 4.12% last week. FHA-backed loans with 30-year FRM interest rates averaged 3.90%, up from the previous week when the average was 3.87%. Fifteen-year FRM mortgage interest rates rose to 3.40% from 3.35%, also reaching its highest level since July 2015. Read more at http://bit.ly/1S4yNFW.

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