ChartManager.loadChart(‘purchaseappschart’, ‘PurchaseMtgAppChart’);

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Refinance Index vs 30 Yr Fixed</p

ChartManager.loadChart(‘refiappschart’, ‘RefiMtgAppChart’);

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“Continued uncertainty due to the lack of resolutionrnregarding the fiscal cliff led interest rates lower last week, with mortgagernrates reaching a new low in our survey,” said Mike Fratantoni, MBA’s VicernPresident of Research and Economics.  “Refinance activity increased, withrnthe refinance index hitting its highest level in two months, and the refinancernshare reaching its highest level since January 2009.  Applications for purchasernincreased for a fifth consecutive week, and are running almost ten percentrnabove their level at this time last year.”</p

Both contract andrneffective rates decreased for all fixed rate products with several rates settingrnnew lows. The average contract interest rate for conforming 30-year fixed-raternmortgages (FRM) (balances of $417,500 or less)</adecreased to 3.47 percent, the lowest rate in the history of the survey, fromrn3.52 percent, and pointsrndecreased to 0.36 from 0.41.  Ratesrnfor jumbo 30-year FRM (balances greater than $417,500)<a name="MBA30J_RateDir"decreased to 3.77 percent from 3.79 percent.  Points increased to 0.35 from 0.32. </p

The contract rate for FHA-backed 30-year FRM decreased torn3.32 percent with 0.51 point, the lowest rate in the history of the survey,rnfrom 3.34 percent with 0.62 point.</p

Fifteen-yearrnfixed-rate mortgage rates declined on average by 1 basis point to 2.85 percent,rnthe lowest rate in the history of the survey. rnPoints decreased to 0.26 from 0.27</p