Mortgage applications move up in U.S. housing market
Topics: MORTGAGE U.S. HOUSING
For the week ending January 31, MBA's market composite index, a measure of mortgage loan application volume, increased 5 percent from the previous week.
Besides, the refinance index, which measures the activity to replace higher rate mortgages with lower rate mortgages, jumped 15 percent from the previous week, according to the MBA.
"Refinance activity jumped as a result, with an increase in the number of applications and a spike in the average loan amount, as homeowners with jumbo loans reacted more resoundingly to lower rates," said Joel Kan, associate vice president of economic and industry forecasting of the MBA.
MBA's purchase index before seasonal adjustment increased 8 percent from the previous week. After removing the influences of predictable seasonal patterns, the seasonally adjusted purchase index decreased 10 percent from the previous week, according to the MBA.
"Prospective buyers weren't as responsive to the decline in mortgage rates likely because of suppressed supply levels. Purchase applications took a step back, but still remained 11 percent higher than a year ago," Kan added. ■