The Mortgage Bankers Association’s (MBA) weekly survey for the week ending October 17th showed a marked increase in mortgage application activity. On a seasonally adjusted basis, and not including the Columbus Day holiday, mortgage applications rose 11.6% from the week before.
The survey’s Refinance Index showed a marked increase, rising 23% over the previous week. According to the MBA, “The refinance share of mortgage activity increased by 65 percent of total applications, the highest level since December 2013.” MBA Chief Economist, Mike Fratantoni, stated, “Mortgage rates have fallen close to 30 basis points over the last four weeks. Refinance application volume reached the highest level since November 2013 as a result, and the average loan balance for refinance applications increased to $306,400, the highest level in the survey’s history.”
Despite the recent increases in refinance activity, the survey’s Purchase Index showed a decline of 5% compared to the previous week. Read more at http://bit.ly/1tlN3A7.