Mortgage applications increased 4.5% from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending Nov. 30.

The refinance share of mortgage activity increased to 83% of total applications from 81% the previous week. The HARP share of refinance applications increased to 27% from 26% although the adjustable-rate mortgage (ARM) share of activity decreased to 3% of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.52%, matching the lowest rate in the history of the survey, from 3.53%, with points increasing to 0.41 from 0.40 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 3.79% from 3.75%, with points increasing to 0.32 from 0.31 (including the origination fee) for 80% LTV loans.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.34%, matching the lowest rate in the history of the survey, from 3.36%, with points decreasing to 0.62 from 0.65 (including the origination fee) for 80% LTV loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.86%, the lowest rate in the history of the survey, from 2.89%, with points decreasing to 0.27 from 0.35 (including the origination fee) for 80% LTV loans.

The average contract interest rate for 5/1 ARMs increased to 2.62% from 2.60%, with points increasing to 0.40 from 0.37 (including the origination fee) for 80% LTV loans.

The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. n

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