MBA Says Mortgage Application Activity is Up and Mortgage Credit Availability is Loosening

The Mortgage Bankers Association’s (MBA) Weekly Mortgage Survey for the week ending August 28, 2015 revealed that mortgage application volume increased by 11.3% over the previous week on a seasonally adjusted basis. The survey results showed a 17% increase in the Refinance Index with the refinance share of application activity making up 58.7% of total application volume. The Purchase Index also saw an uptick by 4% over the prior week. While the interest rates tracked in the survey did not show significant changes, the MBA’s Mortgage Credit Availability Index (MCAI) for August indicated a loosening of mortgage credit within the industry.

Compared to July, mortgage credit availability increased by 0.5% according to the results of the MCAI. MBA’s Chief Economist, Mike Fratantoni, said that mortgage credit availability has increased “in eight of the last nine months” and stated, “While much of the loosening has been for jumbo loan products, the availability of conforming conventional mortgage credit has also somewhat increased, including for mortgages with higher loan-to-value ratios and borrowers with lower credit scores. Fannie Mae recently announced changes to their affordability suite of products, but these changes have not yet impacted the MCAI.” To read the Weekly Mortgage Survey press release, visit http://bit.ly/1hYT3wF.

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