After Month-Long Lull, Application Volume Picks Up

rtgage Bankers Association's (MBA) Market Composite Index – a measure of mortgage loan application volume – increased 17.7% on a seasonally adjusted basis from June 4-11. On an unadjusted basis, the index increased 29.7% compared with the previous week, which was a shortened week due to the Memorial Day holiday. The Refinance Index increased 21.1% from the previous week – the highest Refinance Index recorded in the survey since May 2009. The seasonally adjusted Purchase Index increased 7.3% from one week earlier, which is the first increase in six weeks. The unadjusted Purchase Index increased 17.4% compared with the previous week and was 31.3% lower than the same week one year ago. "While it is clear that purchase applications in May dropped sharply as a result of the tax credit-induced increase in applications in April, it is unclear whether we are seeing the beginnings of a rebound now," says Michael Fratantoni, the MBA's vice president of research and economics. The refinance share of mortgage activity increased to 74.8% of total applications from 72.2% the previous week, which is the highest refinance share observed in the survey since the week ending Dec.18, 2009. The adjustable-rate mortgage share of activity increased to 5.2% of total applications from 5.1% the previous week. SOURCE: [link=]Mortgage Bankers Association


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