Spike in Mortgage Applications

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The applications for mortgage loans marked a considerable increase during the week ended November 14th. The Market Composite Index compiled by the MBA rose by 4.9% week-over-week on a seasonally adjusted basis. It was adjusted for the Veterans Day holiday as well. This was the first rise in the seasonally adjusted index after three weeks of continuous decline.

While with the adjustments for seasonal trends and the holiday the volume of applications rose, on an unadjusted basis it declined by 7%. The Refinance Index went up by 1% compared to the week before.

The increase in the Market Composite Index was driven primarily by the growth in the applications for home purchase loans. The seasonally adjusted Purchase Index rose by 12% in the week ended November 14th compared to the previous week. With this increase, it reached its highest level since July of this year.

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The unadjusted Purchase Index declined by 3% from one week earlier. During the week ended November 14th, it remained 6% below the level which it held during the same week of 2013.
Despite the increase in the applications for mortgage refinance during the week, their share in the total volume of applications decreased. It reached 61% down from 63% during the week before. The share of applications for adjustable rate mortgages also experienced a decline and reached 6.9% of all applications.

The share of applications for FHA loans rose during the week ended November 14th. It went up to 9.9% from 9.6% in the week before. The share of applications for VA loans experienced an increase as well. It rose to 11.5% from 11% during the previous week. The share of applications for USDA loans declined to 0.8% from 0.9% in the week before.

The Weekly Mortgage Applications Survey of the MBA also showed a decrease in the average rate on a 30-year fixed-rate conforming loan. It reached 4.18% down from 4.19% 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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