Mortgage applications rise on increases in refinancing, purchases

Mortgage applications were on the rise last week on jumps in refinancing and purchases as loan rates remain at historical lows. 

Overall activity increased 4.5 percent for the week ended Jan. 6, including an adjustment for the New Year's Day holiday, the Mortgage Bankers Association reported on Wednesday. 

The index got a boost from a 3.3 percent increase in refinancing and an 8.1 percent jump in purchases from a week earlier, according to the survey. 

The four-week moving average is down just slightly, by 0.53 percent, while it decreased 1.92 percent for the purchase index and 0.09 percent for refinancing. 

The refinance share of mortgage activity decreased to 80.8 percent of total applications from the prior week's survey high of 81.9 percent. 

On 30-year fixed-rate mortgages, the average contract interest rate for loans with conforming balances ($417,500 or less) increased to 4.11 percent from 4.07 percent. 

The rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 4.34 percent from 4.41 percent.

A 30-year fixed loan backed by the Federal Housing Administration remained unchanged, at 3.96 percent, while the 15-year rate increased to 3.40 percent from 3.37 percent.