Home >> News >> Origination >> Refinances Push Up Application Volume
Print This Post Print This Post
application

Refinances Push Up Application Volume

Mortgage applications increased for the third straight week in mid-January, continuing a trend that started with the opening of the new year.

[IMAGE]

According to the ""Mortgage Bankers Association's"":http://mba.org/default.htm (MBA) Weekly Mortgage Applications Survey, loan application volume rose 4.7 percent (seasonally adjusted) for the week [COLUMN_BREAK]

ending January 17. On an unadjusted basis, application volume was up 7 percent from the previous week.

The overall increase came entirely from a continued recovery in refinance numbers. The survey's Refinance Index was up 10 percent week-over-week, with refinance share accounting for 64 percent of total applications, the highest level in a month.

Meanwhile, the seasonally adjusted Purchase Index dropped 4 percent compared to the prior week. Unadjusted, the Purchase Index rose 2 percent but fell 15 percent short year-over-year.

Despite the recent upward trend, weak application numbers in the last few months have analysts anticipating a slower year for originations. MBA brought down its 2014 estimates in its ""latest forecast"":https://themreport.com/articles/mba-dials-back-2014-origination-forecasts-2014-01-14, pointing to declining applications and rising interest rates.

The applications survey for last week shows the average 30-year fixed interest rate falling to 4.57 percent--the lowest level since November--with points increasing to 0.36 for 80 percent loan-to-value ratio loans.

x

Check Also

Mortgage Rates Elevated, But Historically About Average

“Though mortgage rates are substantially higher than they have been on average over the past decade, from an historic perspective rates are about average,” Freddie Mac said.