November 14th, 2012
When Hurricane Sandy swept through the Northeast at the end of October, mortgage service companies saw a dive in applications. However, a couple weeks following the drastic weather event, loan requests rose considerably.
According to the Mortgage Bankers Association’s Weekly Applications Survey for the week ending November 9, total home loan volume increased 12.6 percent. Refinance requests grew roughly 13 percent, while purchase applications rose 11 percent.
“Following the decrease in applications two weeks ago due to the effects of superstorm Sandy, mortgage applications in many East Coast states rebounded strongly this week,” said MBA vice president of research and economics Mike Fratantoni.
The most notable jumps in volume during the week, Fratantoni added, were in New Jersey, New York and Connecticut – three states arguably affected the most by Sandy.
Of homeowners who have chosen to refinance in the second half of 2012, many appear to prefer to shorten their amortization periods. A report by Freddie Mac shows roughly three in every 10 borrowers who refinanced in the third quarter reduced the length of their loans.