Home refinancing applications increase while purchase index declines

A federal tax incentive of up to $8,000 expired April 30. Homebuyers eligible for the write-off were granted a three-month extension to Sept. 30 to complete closings on their purchases. 

Loan application volume increased 6.7 percent on a seasonally adjusted basis from a week prior, according to the Market Composite Index, a measure of mortgage loan application volume. 

The four-week moving average for the seasonally adjusted market index is up 6.4 percent.  

The refinance share of mortgage activity increased to 78.7 percent of total applications from 76.8 percent the previous week, the highest refinance share observed in the survey since April 2009. 

The average contract interest rate for 30-year fixed-rate mortgages increased to 4.68 percent from 4.67 percent. The average contract interest rate for 15-year fixed-rate mortgages increased to 4.11 percent from 4.06 percent.