Mortgage applications rise, rates back up

NEW YORK (CNNMoney.com) -- Mortgage applications rose as interest rates recovered slightly from last week's 14-month low, an industry trade group reported Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Dec. 8 rose 11.4 percent to 721.2, from 647.6 a week earlier.

The 30-year fixed-rate mortgage fell to 5.98 percent, its lowest level in 14 months, from 6.13 percent last week.

The 30-year fixed-rate mortgage rose to 6.02 percent from 5.98 percent last week.

The group's seasonally adjusted refinance index rose 15.8 percent to 2304.4 from 1989.7 the previous week, and the purchase index increased by 8.7 percent to 463.8 from 426.6 one week earlier.

The refinance share of mortgage activity increased to 52.6 percent of total applications from 50.1 percent the previous week.

Fixed 15-year mortgage rates decreased from 5.75 percent to 5.66 percent. Rates on one-year adjustable-rate mortgages (ARMs) decreased to 5.76 percent from 5.79 percent.

The ARM share of activity rose to 24.9 percent from 23.9 percent of total applications from the previous week.

The MBA's survey covers about 50 percent of all U.S. retail residential mortgage loans. Respondents include mortgage bankers, commercial banks and thrifts.

Freddie Mac (Charts) and Fannie Mae (Charts) are among the nation's largest mortgage lenders.

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