The Mortgage Bankers Association's (MBA) Market Composite Index for the week ending Aug. 27 increased 2.7% on a seasonally adjusted basis from one week earlier and 2.3% on an unadjusted basis.
The group's Refinance Index increased 2.8% from the previous week, hitting its highest level since May 1, 2009. The seasonally adjusted Purchase Index increased 1.8% from one week earlier.
‘Refinancing activity picked up again last week, reaching new 15-month highs, as borrowers took advantage of even lower mortgage rates,’ says Michael Fratantoni, the MBA's vice president of research and economics.
The Purchase Index, which took a nosedive in May, provided a leading indicator of the drops in new- and existing-home sales reported for June and July, Fratantoni says. He explains that despite the slight increase in last week's purchase activity, it is unlikely that new-home sales for August or existing-home sales for September will increase.
The refinance share of mortgage activity increased to 82.9% of total applications from 82.4% the previous week, and is the highest refinance share observed since January 2009. The adjustable-rate mortgage share of activity increased to 6.1% from 5.8% of total applications from the previous week.
SOURCE: Mortgage Bankers Association