November 1st, 2013
The Mortgage Bankers Association reports that mortgage applications increased.
According to MBA’s Weekly Mortgage Applications Survey, there was a 6.4 percent increase for the week ending Oct. 25 compared to the previous week. The unadjusted figure was a 6 percent rise, refinance applications were up 9 percent and both the seasonally adjusted and unadjusted Purchase Index increased 2 percent.
Most activity was due to refinancing. Of the total applications, refinance activity accounted for 67 percent, which was an increase of 2 percent over the previous week. It has been four months since refinance applications were the majority of all origination activity, as current interest rates have not been as popular with homeowners looking to refinance as they have with buyers.
Mortgage rates have declined and median prices have dipped slightly as well. The National Association of Realtors reports the average median price for existing homes dropped from $212,100 to $199,200 between August and September. Single- family median price also went down – $212,200 to $199,300 – for the same period.
Given the increase in mortgage activity, the lower interest rates and drop in prices have garnered a positive response from buyers and homeowners.