MBA Mortgage Application Index Increases 4.7 Percent

Mortgage applications rose last week brought on by record low mortgage rates.

The Mortgage Bankers Association's index of  applications to purchase or refinance a home rose to 1250.6, from 1194.4 a week earlier,  an increase of 4.7 percent.  The MBA's refinance Index increased 3.2 percent and their Purchase Index increased 11.1 percent.

The MBA's also reported the average contract interest rate for a 30 year fixed rate mortgage (FRM) is up to 4.73, an increase from 4.61 percent. For a 15 year FRM, the average contract interest rate is 4.49 percent, up from 4.45 percent. The average contract interest rate for a one year adjustable rate mortgage (ARM) is 6.23 percent, up from 6.20 percent.

Contributing to lower mortgage rates is the Federal Reserve Bank's decision to purchase Treasury securities and the Fed's program of purchasing mortgage-backed securities to thaw the mortgage securitization market. The program was recently expanded to purchase up to $1.25 trillion of securities.