Slight Rise in Mortgage Applications Due to Higher Demand for Refinancing

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In its weekly report for the week ended August 15th, the Mortgage Bankers Association (MBA) outlined that the Market Composite Index, which measures the movement of mortgage applications, rose by 1.4% on a seasonally adjusted basis. On an unadjusted basis, it rose by 1%.

During the week, the Refinance Index, which measures the number of applications for mortgage refinance, increased by 2.7%. The demand for refinancing increased its share of all mortgage applications to 55% from 54% during the previous week.

The increase in the demand for mortgage refinancing was offset by a drop in the number of applications for home purchase loans. The Purchase Index marked a decrease of 0.4% during the week. This decrease, however, was smaller than the one which occurred during the previous week. During the week ended August 8th, the applications for home purchase financing dropped by 2%. Currently, the Index is 11% lower than it was during the same week of 2013.

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The number of applications for conventional mortgages actually rose. The number of applications for government-backed mortgages fell by 5.9% however. Decline was measured in both the demand for home purchase and refinance deals backed by the government. The number of applications for FHA loans dropped down by 5%. The demand for USDA loans fell by 3%. The largest decrease was marked by the applications for VA loans. They went down by 8%.

The Weekly Mortgage Applications Survey conducted by MBA cover 75% of all retail residential mortgage applications in the United Stated. The Association presents data on mortgage interest rates based on loans with 80% loan to value ratio. The MBA indicates a slight decease in the average interest rate for a 30-year fixed mortgage. It went down to 4.29% from 4.35% during the previous week. The average rate on a 30-year fixed FHA loans decreased to 3.99% from 4.04% during the week before.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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