Mortgage application volume increased 9.5 percent on a seasonally adjusted basis for the week ending September 5, according to the latest report from the MBA.
Not accounting for the holiday-shortened week, applications were actually off 13.6 percent from one week earlier.
And compared to the same Labor Day week a year ago, application volume was down a hefty 24.4 percent.
The increase in lending activity was led by a 15.4 percent rise in refinance apps and a 14.4 percent jump in conventional purchase loans.
The government purchase index, which is largely FHA, fell 8.7 percent, a surprise given its strength over the last many months.
The refinance share of applications climbed to 36.3 percent of total applications, up from 34 percent a week earlier as interest rates showed sizable improvement.
The average 30-year fixed-rate mortgage fell to 6.06 percent from 6.39 percent, while the 15-year dipped to 5.73 percent from 5.96 percent.
The one-year adjustable-rate mortgage fell eleven basis points to seven percent even, but that wasn’t enough to keep the ARM share of apps from sliding to 6.4 percent from 6.6 percent the prior week.
Mortgage applications will likely jump in the next survey as interest rates have dropped thanks to the Fannie/Freddie bailout.
The question remains whether the probable surge in applications will mean more closed loans or just more spinning wheels.
(photo: stinkypeter)
Related Topics:
