Post holiday demand in housing and indications of a strong economy led to an increase in mortgage applications last week. The Market Composite Index, a weekly measure of mortgage loan application volume reported by the MBA, increased 4.1 percent on a seasonally adjusted basis from a week earlier. On an unadjusted basis, the index increased 32 percent compared with the previous week.
The Refinance Index increased 4 percent from the previous week. The seasonally adjusted Purchase Index increased 3 percent from one week earlier. The unadjusted Purchase Index increased 35 percent compared with the previous week and was 7 percent higher than the same week one year ago.
The refinance share of mortgage activity decreased to 52.2 percent of total applications from 52.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.2 percent of total applications.
The report included the following highlights: