The Refinance Index increased 3.4 percent to 2724.7 from 2636.0 the previous week and the seasonally adjusted Purchase Index increased 8.1 percent to 384.7 from 356.0 one week earlier. The Conventional Purchase Index increased 6.1 percent while the Government Purchase Index (largely FHA) increased 15.2 percent. On an unadjusted basis, the Conventional Purchase Index increased 6.3 percent to 561.1 from 527.7 the previous week. The seasonally adjusted Conventional Index increased 3.8 percent to 935.8 from 901.8 the previous week, and the seasonally adjusted Government Index increased 12.9 percent to 375.2 from 332.4 the previous week.

The four week moving average for the seasonally adjusted Mortgage Market Index is up 1.8 percent to 758.0 from 744.5. The four week moving average is up 1.1 percent to 377.4 from 373.4 for the Purchase Index, while this average is up 2.4 percent to 2987.8 from 2918.6 for the Refinance Index.

The refinance share of mortgage activity decreased to 52.2 percent of total applications from 53.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.5 from 5.4 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 5.78 percent from 5.75 percent, with points decreasing to 1.11 from 1.19 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.39 percent from 5.27 percent, with points decreasing to 1.11 from 1.13 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 7.06 percent from 7.00 percent, with points increasing to 1.46 from 1.39 (including the origination fee) for 80 percent LTV loans.

The survey covers approximately 50 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.

Source: By The Mortgage Bankers Association