Mortgage Rates, Home Loan Demand Both Rise

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According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage applications surged last week from the week before. The MBA’s Market Composite Index – which measures both refinance and purchase demand – was up 7.9 percent from the previous week. Mike Fratantoni, MBA’s chief economist, said application volume rebounded coming out of the Labor Day holiday, even as rates increased to their highest level in the last few months. In fact, mortgage rates increased across all loan categories, including loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 30-year fixed-rate mortgages with both conforming and jumbo balances. Despite increasing rates, refinance activity was up 10 percent from the week before and demand for loans to buy homes rose 5 percent from one week earlier. The refinance share of total mortgage activity reached its highest level since February. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

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