Mortgage Bankers Association, Mortgage Application Volume Increased

Mortgage application volume increased 3.8 percent during the week ending Oct. 26, according to the Mortgage Bankers Association’s weekly application survey.

The MBA’s application index increased to 681.7 from 656.5 the previous week.

Growth in applications was driven by rising refinance volume. Refinance application volume increased 9.2 percent, while purchase volume dropped 0.7 percent. Refinance volume accounted for 49.6 percent of all applications, compared with 47 percent the previous week.

The MBA’s 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 MBA tracked application volume. A reading of 681.7 means mortgage application activity is 6.817 times higher than it was when the MBA 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 as interest rates fell. The average interest rate for traditional 30-year fixed-rate mortgages fell to 6.15 percent from 6.21 percent the previous week. The average interest rate for one-year adjustable-rate mortgages declined to 5.93 percent from 6.1 percent.

Mortgage application volume rises
The Associated Press