Mortgage Application Volume Rose 7.5pc Weekend Jan-25-2008

WASHINGTON - January 30, 2008 - Mortgage application volume rose 7.5 percent during the week ended Jan. 25, according to the trade group Mortgage Bankers Association’s weekly application survey.

The Mortgage Bankers Association’s application index rose to 1,054.9 from 981.5 the previous week.

Application volume was pushed higher by a jump in refinance volume. Refinance application volume increased 22.1 percent, while purchase volume tumbled 17.7 percent. Refinance applications accounted for 73 percent of total applications.

The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom.

An index value of 100 is equal to the application volume on March 16, 1990, the first week the Mortgage Bankers Association tracked application volume. A reading of 1,054.9 means mortgage application activity is 10.549 times higher than it was when the Mortgage Bankers Association began tracking the data.

The survey provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers about 50 percent of all residential retail mortgage originations each week.

Application volume rose despite an increase in interest rates. The average rate for traditional, 30-year fixed-rate mortgages rose to 5.6 percent from 5.49 percent. The average rate for 15-year fixed-rate mortgages, which are often used to refinance, rose to 5.04 percent from 4.95 percent.

Average rates for one-year adjustable rate mortgages increased to 5.7 percent from 5.51 percent.

http://www.mortgagebankers.org

Mortgage application volume rises
The Associated Press