Mortgage Applications Climb in Week Ending January 19th, Marking Third Consecutive Increase

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending Friday, January 19th, the Market Composite Index—a measure of mortgage loan application volume—increased 3.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined 4.0% compared with the previous week. The results include an adjustment to account for the MLK Holiday.

The holiday adjusted Refinance Index decreased 7.0% from one week ago and was 8.0% lower than the same week one year ago. The unadjusted Refinance Index fell 16.0% from the previous week and was 8% lower than the same week one year ago.

The seasonally adjusted Purchase Index increased 8.0% compared with one week ago. The unadjusted Purchase Index increased 3.0% compared with the previous week but was 18.0% lower than the same week one year ago.

Commenting on the results of the survey, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage rates increased slightly last week, but there continues to be an upward trend in purchase activity. Conventional and FHA purchase applications drove most of the increase last week as some buyers moved to act early this season. Refinance applications declined over the week and remained at low levels. There is still little incentive for homeowners to refinance with rates at these levels.”