Refi Apps Increase Slightly, Purchase Apps Decline

rket Composite Index, a measure of mortgage loan application volume, increased 0.9% on a seasonally adjusted basis from May 21 to May 28, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. On an unadjusted basis, the index increased 0.3% compared with the previous week. The Refinance Index increased 2.4% from the previous week – a smaller increase than in previous weeks, but still the fourth consecutive weekly increase for the Refinance Index. The seasonally adjusted Purchase Index decreased 4.1% from one week earlier. The Purchase Index decreased for the fourth consecutive week and is currently at the lowest level since April 1997. The unadjusted Purchase Index decreased 5.2% compared with the previous week and was 16.8% lower than the same week one year ago. "With another week of historically low mortgage rates, the trend from the prior three weeks continued, as refinance applications increased while purchase applications dropped,’ says Michael Fratantoni, the MBA's vice president of research and economics. ‘Purchase applications are now almost 40 percent below their level four weeks ago, while the refinance share, at 74 percent, is at its highest level since December. In addition, the [adjustable-rate mortgage] share dropped last week to its lowest level since March of this year, as borrowers took the opportunity to lock in at historically low fixed mortgage rates." To view a complete rundown of the MBA's weekly survey, click [link= ]here[/link]. SOURCE: [link= ]Mortgage Bankers Association


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