Major Increase in Mortgage Applications

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Mortgage applications rose by 7.9% on a seasonally adjusted basis in the week ended September 12th compared to the previous week. On an unadjusted basis, the increase was 19%. This is the movement of the Market Composite Index. This index indicated the number of mortgage loan applications in the U.S. It is compiled by the Mortgage Bankers Association.

While the total volume of mortgage applications reached its highest level since June of this year, the demand for home purchase loans grew at a lower rate. The applications for home purchase loans rose by 4.8% on a seasonally adjusted basis during the week ended September 12th from the week before. They are still 10% lower compared to the same week of 2013, however.

Refinance at
Loan Type

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The weekly increase in refinance applications was over 2 times higher compared to the increase in the applications for home purchase loans. It was 10.3% on a seasonally adjusted basis. The share of refinance in mortgage activity rose by 2% compared to the week before. It climbed up to 57% from its level of 55% in the previous week. Currently, the refinance share is the largest since February 2014.

The increase in mortgage applications was accompanied by an increase in the mortgage rates during the week ended September 12th according to MBA data. The average contract interest rate on a 30-year fixed-rate mortgage went up to 4.36% from its previous week’s level of 4.27%. At present, it is at its highest level since June 2014.

The average contract interest rate on an FHA loan rose to a level of 4.03% from a level of 3.97% during the previous week. The average contract interest rate on a 15-year fixed-rate mortgage loan climbed to 3.56% from 3.44% during the week before. The average contract rate on a 5-year adjustable rate mortgage went up to 3.19% from 3.12% during the previous week.

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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