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Mortgage applications continue to perk up after ending 2012 on a low note, according to data from the ""Mortgage Bankers Association's"":http://www.mbaa.org/default.htm (MBA) latest Weekly Mortgage Applications Survey.
[IMAGE]The Market Composite Index, a measure of application volume, increased 15.2 percent on a seasonally adjusted [COLUMN_BREAK]
basis in the week ending January 11. On an unadjusted basis, the index was up 45 percent from the prior week.
Purchase activity continued strong, with the Purchase Index rising 13 percent to its highest level since April 2011. The unadjusted Purchase Index ended the week 47 percent above the previous week's reading and was 5 percent higher than the same week in 2012.
The Refinance Index also increased, jumping up 15 percent from week to week. The refinance share of total mortgage activity remained unchanged at 82 percent, however.
The adjustable-rate mortgage (ARM) share of activity increased to 3 percent of total applications, MBA reports.
The rise in applications accompanies no apparent change in interest rates. According to the association's data, the average rate for a 30-year fixed-rate mortgage (FRM) with a conforming balance was 3.61 percent, flat from the previous week. However, points (including the origination fee) dropped to 0.38 percent from 0.41 percent previously, bringing the effective rate down.
