MBA: Mortgage applications increase markedly

Refinancings were the reason for the greater number of home loan applications recently.According to the most recent weekly survey conducted by the Mortgage Bankers Association, the national total of home loan applications increased again, growing by 4.1 percent for the week ending August 12.The greater total was the result of more homeowners attempting to refinance their home loans to take advantage of the current low interest rates. Freddie Mac's most recent Primary Mortgage Market Survey showed the rate for a 30-year fixed loan was 4.32 percent during roughly the same period.Unadjusted, the Market Composite Index was up 3.6 percent from the previous week. The Refinance Index was also up, growing 8 percent on an adjusted basis. However, its level was 16.3 percent below the mark at the same time last year. Due to the recent economic strife, the Purchase Index declined during the week, falling 9.1 percent on an adjusted basis.”Unprecedented volatility in the stock market last week amid additional signs that the economy has slowed led to further drops in mortgage rates, with the 15-year rate reaching a new low for the MBA survey,” said Michael Fratantoni, MBA's vice president of Research and Economics. “Purchase application activity fell sharply over the previous week, likely the result of potential homebuyers hesitant to purchase in this highly volatile and uncertain environment.”With interest rates for home loans now at their lowest all year, more home purchases are being made. Sales of single-family Houston properties grew during July, the Houston Association of Realtors recently reported.Courtesy of 2M Realty News

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