Mortgage activity jumps with interest rates down

NEW YORK, Jan. 15 (UPI) -- U.S. mortgage activity rose a solid 11.9 percent in the week that ended Friday, the Mortgage Bankers Association said Wednesday.

The MBA said mortgage refinancing rose 11 percent in the week, while rising to 61 percent of all mortgage activity.

Averages of interest rates for short-term and long-term loans were lower. Rates for 30-year fixed rate mortgages not backed by the Federal Housing Authority fell from 4.72 percent to 4.66 percent, with points increasing from 0.28 to 0.33.

For similar loans backed by the FHA, interest rates fell from 4.36 percent to 4.29 percent, with points rising from 0.15 to 0.17.

For so-called jumbo loans of $417,000 or more, average interest rates fell from 4.66 percent to 4.58 percent, with points rising from 0.12 to 0.24.

Average rates for 15-year, fixed-rate contracts dropped from 3.77 percent to 3.72 percent with points on those loans rising from 0.34 to 0.37, the MBA said.

Average rates for short-term loans with adjustable rates eased back from 3.33 percent to 3.28 percent. Points for short-term loans rose from 0.44 to 0.47, the association said.