Mortgage applications jump 7.5% as rates move higher

— -- The Mortgage Bankers Association said Wednesday that mortgage loan applications increased a seasonally adjusted 7.5% the week ended Aug. 21 from a week earlier, as loan rates edged up.

On an unadjusted basis, the Index is up 34.1% from the same week a year ago.

Refinancing applications increased 12.7% from the previous week, third increase in four weeks. The seasonally adjusted purchase index increased 1.0% from a week earlier, boosted entirely by increased demand for government loans, the MBA said. This marks the fourth consecutive weekly gain – first time this has happened since March, when fixed mortgage rates first dropped and stayed below 5%.

Refinance applications accounted for 56.5% of applications, up from 53.3% the previous week. Adjustable-rate mortgage (ARMs) activity remained unchanged at 6.5% of applications.

Interest rates on 30-year fixed-rate mortgages increased to an average 5.24% from 5.15%, with points increasing to 1.07 from 0.98, including the origination fee, for 80% loans.

Rates for 15-year fixed-rate mortgages averaged 4.58%, up from 4.52%, with points increasing to 1.18 from 0.93.

Interest rates for one-year ARMs averaged 6.74%, up from 6.66%, with points increasing to 0.17 from 0.07 .