Mortgage applications jump 5.6% as rates slide

— -- Mortgage applications jumped 5.6% the week ended Aug. 14 from a week earlier as average mortgage rates fell, the Mortgage Bankers Association (MBA) said Wednesday.

Applications were up 25% from the same week one year ago.

Refinancing applications were up 6.9% following a 7.2% drop the prior week. Mortgage purchase applications were up 3.9%, a third weekly gain.

" The large swings in mortgage rates over the past month have resulted in see-saw like activity in the Refinance Index. By contrast, the purchase activity has not been deterred by interest rate volatility, and has continued to trend gradually upward," the asssociation said.

Refinancings accounted for 53.3% of applications in the most recent week, vs. 52.3% the previous week. Adjustable-rate mortgages (ARMs) accounted for 6.5% vs. 5.8% the previous week.

The average interest rate for 30-year fixed-rate mortgages slipped to 5.15% from 5.38% the previous week, with points falling to 0.98 from 1.18, including the origination fee, for 80% loans, the MBA said.

The average rate for 15-year fixed mortgages fell to 4.52% from 4.71%, with points falling to 0.93 from 1.20.

The average for one-year ARMs fell to 6.66% from 6.71%, with 0.07 points, vs. 0.08.