Hybrid adjustable rate mortgages were mixed. The five-year ARM average sank to 2.83 percent with an average 0.5 point. It was 2.92 percent a week ago and 3.09 percent a year ago.
The one-year ARM average has remained at 2.46 percent with an average 0.4 point for the past five weeks.
Len Kiefer, Freddie Mac deputy chief economist, cited the most recent employment data when explaining why rates came down this week.
“The US economy added 126,000 new jobs in March, well below market expectations of 247,000 jobs,” Kiefer said in a statement.
“We did see some uptick in wages, as average hourly earnings increased 7 cents for the month, and are up 2.1 percent over the year. Meanwhile, jobless claims fell sharply to 268,000 this week, much lower than market expectations of 285,000.”
A surge in purchase applications offset weak refinance applications last week, according to the latest data from the Mortgage Bankers Association.
The market composite index, a measure of total loan application volume, increased only 0.4 percent. The refinance index fell 3 percent, while the purchase index climbed 7 percent.
“Purchase mortgage application volume last week increased to its highest level since July 2013, spurred on by still low mortgage rates and strengthening housing markets,” said Fratantoni, MBA’s chief economist, said in a statement. “Purchase volume has increased for three straight weeks now on a seasonally adjusted basis.”
The refinance share of mortgage activity accounted for 57 percent of all applications.