Increase in Mortgage Applications Reported
November 21, 2007
In a recent survey conducted by the Mortgage Bankers Association, mortgage applications actually increased during the first part of November. The increase was reported as 5.5 percent, ending the 9th of Nov.
According to its own numbers, the Mortgage Bankers Association’s mortgage application index rose to 707.3; that is up from 670.6 the previous week.
Other encouraging news came as refinancing volume increased 6.4 percent during the week. Purchase volume jumped 4.8 percent. Refinance demand accounted for 50.2 percent of total applications.
To give some perspective to the numbers, a MBA index value of 100 is equal to the application volume on March 16, 1990, the first week the MBA began to track application volume. An index number of 707.3 means mortgage application activity is 7.073 times higher than it was when the MBA began tracking the data.
The index is often used as a glimpse into the mortgage lending activity as reported by mortgage banks, commercial bankers and thrifts. It encompasses around 50 percent of all residential mortgage originations each week.
Overall, the volume of applications increased during the week ending Nov. 9, even though there were some small increases in interest rates. The average interest rate for a traditional, 30-year fixed-rate mortgage increased slightly to 6.19 percent from 6.16 percent the week prior. The average interest rate for one-year adjustable-rate mortgages only increased to 5.98 percent from 5.94 percent a week earlier