Mortgage applications and rates increase

The Zillow Mortgage Rate Ticker found mortgage rates increased slightly for the week ending November 4, with the 30-year fixed mortgage rate at 3.83 percent, up from 3.82 percent the week before. The 15-year fixed mortgage rate is 3.2 percent, while the 5-1 adjustable-rate mortgage is 2.72 percent.

"The 30-year fixed mortgage rate remains historically low but continues to fluctuate in parallel with additional news of economic instability in Italy and Greece," said Erin Lantz, director of Zillow Mortgage Marketplace.

As mortgage rates showed modest increases, mortgage applications jumped 10.3 percent last week compared with the week before, the Mortgage Bankers Association reported. The refinance index increased 12.1 percent compared with the week before, and the purchase index grew 4.8 percent as well, reaching its highest level since August. The refinance share of the mortgage activity increased to 78.6 percent, up from 77.1 percent the week prior.

“Treasury rates dropped last week, as renewed turmoil in Europe once again led to a flight to quality, and 30-year mortgage rates dropped to their second lowest level of the year,” said Mike Fratantoni, MBA’s vice president of research and economics. “Refinance applications jumped more than 12 percent to their highest level in a month and some lenders experienced even larger increases. As has been the case all year, many refinance applicants are opting to deleverage by choosing 15-year mortgages.”

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