Mortgage Applications Fly Up 32% Last Week

According to the Mortgage Bankers Association mortgage applications flew up 32.2 percent last week ending with January 4th.

This major increase in mortgage applications breaks the 3 consecutive weeks worth of sharp declines. The Mortgage Bankers Association’s index rose to 706 from 533.9 for the previous week. One thing that must be considered is that last week was a shortened week due to the Christmas holiday. A seasonal adjustment is made, but overall the total application volume is still down 13 percent from four weeks earlier when it began a steady decline. The collapse in subprime lending has also made getting a loan more difficult, suggesting people will apply at several banks to improve their chances.

“Potential home buyers and refinancers are submitting multiple applications in order to secure financing because of the turmoil in the mortgage markets,” said Steven Wood, president of Insight Economics.

Refinance volume increased 53.9 percent last week which has been fueled by lowering interest rates. Purchase volume jumped up just 14.7 percent.

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