Mortgage applications reach highest point in three years

August 3rd, 2012

Mortgage applications climbed to another high point.

Overall mortgage application volume increased slightly during the week ending July 27, boosting numbers to their highest, according to the Mortgage Bankers Association.

Mortgage applications rose 0.2 percent compared to the previous week, while the Refinance Index jumped 0.8 percent. However, the Purchase Index dropped 2 percent compared to one week earlier, according to the association's Weekly Mortgage Applications Survey. As a whole, applications were at the highest level experienced since early June, while refinances reached a point not seen since mid-April.

More than 80 percent of total loan activity was dedicated to refinances during the week, which has not occurred since mid-January. Fixed-rate products also remained popular, as only 4.1 percent of those who applied for mortgages opted for an adjustable-rate loan.

The increase in mortgage applications may be due to steadily low mortgage rates, which have dominated the market in recent months. Transferees should contact their mortgage consultant to discuss loan options and terms to qualify for purchasing at affordable rates while home prices remain depressed.