Mortgage applications for refinances and home purchases rose slightly for the week as the up and down spiral of the real estate recovery demonstrated its bumpy ride, according to the Mortgage Bankers Association. The leading index of mortgage applications in the U.S. moved a minor 2.7% higher during the week.
The rise in applications came a week after they took their largest tumble since last year as uncertainty over the nation’s economy, and a housing market recovery that is weak at best troubles the country. Refinancing and home purchase money applications had the same 2.7% rise.
The four week moving average is also up slightly, 2.5% on average over the month long period being bolstered by a stronger share of refinances. Home purchases still remain lower in the index, rising a slight 1% over the month as perspective home buyers remain cautious about the marketplace.
A “jobless” recovery will do little to aid the nation’s economy when it comes to the housing market since people without jobs rarely make home purchases.
Refinances make up two out of three applications, according to the bankers’ survey which accounts for about half of all U.S. mortgage activity. All but 5.9% of mortgages being applied for are fixed-rate loans as interest rates remain at near historic lows.
The rate on a closed 30-year fixed rate mortgage rose to 4.80% from 4.79% during the week on an 80% loan to value mortgage with 0.96 points. The average rate on a fully executed 15-year fixed rate mortgage declined to 4.02% from 4.03% the previous week.