Mortgage Applications for Purchases Jump 8%

Mortgage applications for those purchasing homes were on the upswing last week: Applications for purchases grew a seasonally adjusted 8.2 percent during the week ending Feb. 24, the Mortgage Bankers Association reports. The MBA's unadjusted Purchase Index increased 0.9 percent compared with the previous week and was 4.3 percent lower year over year.

Mortgage refinance applications, on the other hand, dropped 2.2 percent during the same period, which brought overall mortgage applications down 0.3 percent compared to a week earlier.

The MBA report was adjusted to take into account the President’s Day holiday last week.

"Mortgage rates remained near survey lows last week, but refinance volume fell slightly," says Michael Fratantoni, MBA’s vice president of research and economics.

Home buyers continue to favor fixed-rate 30-year mortgages over other financing options, according to the MBA survey. In January, 86 percent of all home purchase applications were for 30-year fixed-rate mortgages, 6.5 percent for 15-year fixed-rate mortgages, and 5.4 percent were for adjustable-rate mortgages.

Source: Mortgage Bankers Association