New buyers push mortgage applications to three year high

PropertyRoundsLogoBuyers drove the Mortgage Bankers Associations‘ weekly index of purchase activity to its highest level in nearly three years.

The MBA’s national report said total activity was up 4.8 percent last week, the highest level since January. There was a 5 percent increase in purchasing activity, raising the total amount of loan applications for new purchases to its highest level since May of 2010.

Refinancing activity was also up, and still dominates the market holding a 75 percent share.

Rates inched down for both conforming 30-year-fixed and jumbo loans. The rate for a 30-year mortgage was 3.67 percent, down from 3.68 percent. The rate on a jumbo loan was 3.77 percent, down from 3.79 percent and is now just 0.1 percent higher than loans for more modest homes.

Adjustable rate mortgages continued to represent 5 percent of the total market.

Rob Varnon