Mortgage applications bounced back
in the most recent week as interest rates fell, offering some temporary
relief to borrowers, the Mortgage Bankers Association reported
Wednesday.
The MBA’s index of mortgage application activity, which reflects both
refinancing and home purchase demand, increased 5.5 percent for the
week ending Sept. 13. The previous week the index had posted an 11.2
percent gain.
This week, the purchase index, viewed as a leading indicator of future home sales, jumped 7 percent during the week.
Meanwhile, the refinancing index increased 4.9 percent. Two weeks
ago, the refinancing index had dropped to its lowest level since June
2009 as mortgage rates had risen.
The MBA reports that the 30-year fixed-rate mortgage eased 13 basis
points last week, averaging 4.62 percent. Earlier this month, 30-year
rates had matched a 4.8 percent high for the year.
Source: “U.S. mortgage applications gain as rates slip - MBA,” Reuters (Sept. 25, 2013) and “U.S. Mortgage Applications Rose 5.5% Last Week,” The Wall Street Journal (Sept. 25, 2013)