WASHINGTON, Sept. 1 (UPI) -- The Mortgage Bankers Association said Wednesday U.S. mortgage activity increased in the week ending Aug. 27, with refinancing activity at a 15-month high.
The MBA's Market Composite Index rose 2.7 percent in the week while the Refinancing Index rose 2.8 percent, the trade group said.
During the week, the average interest rate for 30-year, fixed-rate mortgages declined from 4.55 percent to 4.43 percent with points rising from 0.89 to 1.34.
Rates for the average 15-year, fixed-rate mortgage fell from 3.91 percent to 3.88 percent, with points for 15-year contracts falling from 1.64 to 1.45.
"Refinancing activity picked up … as borrowers took advantage of even lower mortgage rates," said Michael Fratantoni, MBA's vice president of research and economics.
However, "Despite the slight increase in purchase activity in the past week, the continued low level of purchase applications indicates we are unlikely to see an increase in new home sales reported for August or existing home sales reported for September," he said in a statement.