The Mortgage Bankers Association (MBA) reported today that
mortgage application volume was up 32 percent from the week before,
bringing lenders their most business since 2009.
The MBA, a Washington, D.C. based group that monitors banking
markets, reports in their seasonally adjusted index that
refinancing was up 19.2 percent last week. The group noted in a
news release that this is likely a reflection of the record-low
mortgage rates previously reported here. Mortgage refinance now
accounts for 79 percent of all mortgage applications, up from 78
percent last week.
"Refinance volume increased as borrowers were able to lock in at
mortgage rates below 4 percent, and purchase application volume was
at its highest level in over six months," said Michael Fratantoni,
MBA's vice president of research and economics, in a statement.
A more promising jump was the requests for new loans, which rose
12.8 percent last week, according to the report. This figure
indicates an increase in home sales as buyers take advantage of low
rates and cheaper homes, according to an analysis by NASDAQ.
Borrowers looking to take a mortgage out on a home had been
leveling off over the last four weeks according to figures from
MSNBC, signaling a potential slowdown in the market for home
purchases. The numbers in this index indicate home sales could be
on an up-tick and lenders could be in for a busy summer.
Much of the continued refinance volume will be related to the
Home Affordable Refinance Program (HARP), which many experts
say is responsible for nearly one-third of all loan restructurings.
If you think you may be eligible for HARP or you have a desire to
refinance, give a call to the mortgage professionals at New Penn
Financial. We should be able to offer you competitive rates and
help lower your monthly payment.
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