The Refinance Index increased 2 per cent from the previous week to its highest level since February 10, 2012. The seasonally adjusted Purchase Index decreased slightly from one week earlier to its lowest level since April 13, 2012.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.87 per cent, the lowest rate in the history of the survey, from 3.91 per cent, with points remaining unchanged at 0.46 (including the origination fee) for 80 per cent loan-to-value ratio (LTV) loans.
The purchase index is still very weak. The purchase index has mostly moved sideways for the last two years.
Refinance activity continues to increase as mortgage rates fell to another record low last week.