U.S. mortgage application volume up 17% last week : Report

By Nathalie Tadena

The number of total mortgage applications filed in the U.S. last week jumped 17% as mortgage rates fell to new lows, the Mortgage Bankers Association said Wednesday
The refinance index increased 22% from the previous week, according to the MBA's weekly survey, which covers more than three-quarters of all U.S. retail residential mortgage applications
 On a seasonally adjusted basis, the purchasing index slipped 0.1% from a week earlier, MBA said
"Refinance application volume increased last week to near peak levels for the year as mortgage rates dropped to a new low, driven down by growing concerns about the health of the US economy," said MBA Vice President Mike Fratantoni
Low mortgage rates have convinced many homeowners to refinance their mortgages, though tougher lending requirements still keep many prospective home buyers from taking out new debt
The share of applications filed to refinance an existing mortgage increased to 80% of total applications, from 77% in the prior week
Adjustable-rate mortgages decreased to 4.1% of total activity
The average rate on 30-year fixed-rate mortgages with conforming loan balances fell to 3.74%, the lowest rate in the survey's history, from 3.79% a week earlier
Rates on similar mortgages with jumbo loan balances decreased to 3.98%, another survey low, from 4.05%
The average rate on FHA-backed 30-year fixed-rate mortgages declined to its lowest rate in the survey's history of 3.55% from 3.63% in the prior week
The average for 15-year fixed-rate mortgages slid to 3.12%, also a survey low, from 3.15% a week earlier
The 5/1 ARM average remained unchanged from the prior week at 2.71%