Mortgage Applications Edge Up Over Previous Week

Washington, DC, Jan. 18, 2017 -- Total mortgage application volume last week was rose 0.8 percent on a seasonally adjusted basis compared with the previous week, according to the Mortgage Bankers Association.

Applications, however, were 14 percent lower than a year ago.

Applications to refinance a home loan rose 7 percent for the week, spurred by the announcement from outgoing HUD Secretary Julian Castro that the FHA would lower its annual insurance premium by 25 basis points.

"Refi volume is still down sharply from the end of last year, remaining 13 percent below the level from four weeks ago," said Mike Fratantoni, MBA chief economist.

Mortgage applications to purchase a home fell 5 percent for the week and are now down 1 percent from a year ago.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.27 percent, from 4.32 percent.